I really don't expect any trader (retail, institutional or sovereign) to buy the Euro. However, the daily technicals are overextended, so nobody is going to be stupid enough to hit it with a hammer either. We need a correction and that will be achieved via some profit taking from the current short positions. We just need a catalyst.
What will that catalyst be? With all the doom and gloom news being trumpeted by the media over the Greek situation and the high risk of contagion resulting from such a scenario, it's hard to come up with any catalyst that may cause a short covering. Yesterday's FOMC statement didn't even have an impact on the USD, most likely due to the fact that we are still very much in a risk-off sentiment.
I really don't know what to think any more from a fundamental perspective. I know the Euro is under tremendous pressure and it will in fact go down, but without an upward correction (or at least a long period of sideways movement) this sucker does not have the technical setup to go much lower. Not even a dismal Spanish bond auction was enough to drive it lower this morning. In fact the slight rising trend line formed on M15 is holding well and is now confirmed with three points.
Patience is key.
E/U M15
What will that catalyst be? With all the doom and gloom news being trumpeted by the media over the Greek situation and the high risk of contagion resulting from such a scenario, it's hard to come up with any catalyst that may cause a short covering. Yesterday's FOMC statement didn't even have an impact on the USD, most likely due to the fact that we are still very much in a risk-off sentiment.
I really don't know what to think any more from a fundamental perspective. I know the Euro is under tremendous pressure and it will in fact go down, but without an upward correction (or at least a long period of sideways movement) this sucker does not have the technical setup to go much lower. Not even a dismal Spanish bond auction was enough to drive it lower this morning. In fact the slight rising trend line formed on M15 is holding well and is now confirmed with three points.
Patience is key.
E/U M15
Those who say it cannot be done should not interrupt those who are doing it