Disliked{quote} Looking at the fudamentals and Draghi wanting the euro down and still the euro is hardly declining. Well what can it be other than QE.Ignored
Markets do not move in straight lines, it is the most inefficient way to extract profit from the market..... lets just say that there is $1Trillion (pick any big number) of EU longs held by big accounts (whatever you want to call them, funds, inst, big boys, etc) the price reached 399x and Draghi said what he said, it was a true market signal, the reaction was immediate and the markets have barely retraced since and now +400 lower
IF the big accounts just dumped their $1T at that point the volume would have overwhelmed demand and price would have simply collapsed hundreds of pips more than 400... in that case the average fill rate would have been very low indeed..... instead they release in chunks and they uses sellside algos to hide their volumes just to stop price dropping too far whilst they offload, they repeat this process over and over slowly feeding the market, slowly unloading they do this everytime the market hits certain levels I have no doubt that some of the players are still unloading longs from 1.20 zone. It does not stop them establishing shorts at the same time because they can use derivatives to do this initially.
so basically selling steady at levels provides a higher net return than dumping to market..... after all who buys when the price is just falling straight?
So 3500 is not waiting on QE end it is waiting on volume to feed and clear demand.
imo
