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  • EUR/USD, USD/JPY: We're Bearish & Short - BofA Merrill

    From efxnews.com

    Euro Stoxx Banks Index is completing an almost 6m Head and Shoulders Top and this could be trouble for EUR/USD, says Bank of America Merrill Lynch. "The Euro Stoxx Banks Index has broken down, completing a 6m Head and Shoulders Top. A close below 145.40 confirms the top and turn lower, targeting 130.52/124.93 before renewed basing and a resumption of the long term (2yr) bull trend," BofA adds. This, according to BofA, could push EUR/USD lower reinforcing that its medium, potentially long term, bear trend is resuming after a 2 month hiatus. "Initial targets are seen to 1.3212 (swing target) ahead of 1.3104 and then ... (full story)

so does it mean we have to go long on both these pairs?
wow.. and these are the pros...
  • Post #3
  • Quote
  • Edited at 8:04pm Jul 9, 2014 7:51pm | Edited at 8:04pm
Get ready, should get continuation moves up on A/U, G/U and even some in E/U during Asian...but the bigger moves will happen during London. There isn't one valid reason to own the crap USD! Happy Trading!
Wow, their bearish AND short...

Lol...
Another bank...thanks, guys...but I already added to my longs. Thanks for the confirmation, though.
Do people really think that top-tier investment banks are producing research that is "purposely false"? As if they even do know the truth what's going to happen, but put out research that is to the contrary, just to mislead people?

That banks would act questionably is not impossible by any stretch. I don't question that. But nobody knows what the market is going to do! Banks don't control it - buyers do. In other words, bank clients. And bank clients don't always listen to, or even trust, bank research! Nor do they communicate with each other on any kind of significant scale to 'band together' and move the market. If anything, the buy side keeps its positioning as private as possible in order to ensure they get good prices.

There is a misunderstanding, I think, about the value of efxnews and other institutional research. It is very valuable - it's a good way to get an expert's opinion on what the market has been doing, and what to look out for.

It's neither nefarious nor prophetic! Just my two cents from having worked in the industry.
</rant>

....Now, in other news, I happen to be short EURJPY, but for my own reasons
Quoting PoseidonFX
Do people really think that top-tier investment banks are producing research that is "purposely false"? As if they even do know the truth what's going to happen, but put out research that is to the contrary, just to mislead people?

That banks would act questionably is not impossible by any stretch. I don't question that. But nobody knows what the market is going to do! Banks don't control it - buyers do. In other words, bank clients. And bank clients don't always listen to, or even trust, bank research! Nor do they communicate with each...
I would question the label of "experts" opinion.
This would be determined by the quality of their research measured by results, not their qualifications or position within the industry.

In my 3 years here at FF and dozens and dozens of "expert" analysis observed for EU and GU, I can count on 1 hand the number of correct calls and these were nearly all longs well into the trend at or approaching moderate resistance.
In fact I am reasonably sure they went the whole of 2012 with a 100% failure rate on these 2 pairs (Vast majority on EU).

I lost count of the number times they called short after price started rising sharply off strong support and long after falling from strong resistance.

Any high quality, expert, good R/R swing trades off support and resistance levels?
Forget it!
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  • Story Stats
  • Posted: Jul 9, 2014 7:29pm
  • Submitted by:
     eFx Newz
    Category: Technical Analysis
    Comments: 8  /  Views: 2,025