19 Jan 2015
Euro trend remains to the downside, next important support at 1.1210 – Kshitij Consultancy
FXStreet (Barcelona) - The Kshitij Consultancy Team views the overall trend for EUR/USD to remain on the downside, anticipating the markets to go short with expectations of QE going strong, and further notes that the next immediate support for the pair is at 1.1210 levels.
Key Quotes
“All eyes on ECB this week, for what is the one of the prime event risk of the year. ECB meets on Thursday (22nd) and expectations are for a large QE in excess of Euro 500bn.”
“No QE would truly spook the market with a massive short squeeze in Euro. A lower QE would signal an continuation of Eurozone deflation weakening Euro. A large QE would weaken Euro but over a period of time stabilize Euro.”
“Across all charts, the bounces have been small and shallow. It seems Dollar is headed higher until something turns Dollar bearish. The risk for that might come in the FOMC meeting on 28th. So, in effect January has turned out to be more volatile than anybody expected.”
“Euro made a new 10 year low at 1.1458. The short positions in Euro has continued to be very high, and also highly rewarded.”
“Given the expectations of QE market is likely to go short at higher levels in Euro, and the selling pressure at higher levels would be very high. The trend on all time frames remains down. The next important support for Euro is at 1.1210.”
Key Quotes
“All eyes on ECB this week, for what is the one of the prime event risk of the year. ECB meets on Thursday (22nd) and expectations are for a large QE in excess of Euro 500bn.”
“No QE would truly spook the market with a massive short squeeze in Euro. A lower QE would signal an continuation of Eurozone deflation weakening Euro. A large QE would weaken Euro but over a period of time stabilize Euro.”
“Across all charts, the bounces have been small and shallow. It seems Dollar is headed higher until something turns Dollar bearish. The risk for that might come in the FOMC meeting on 28th. So, in effect January has turned out to be more volatile than anybody expected.”
“Euro made a new 10 year low at 1.1458. The short positions in Euro has continued to be very high, and also highly rewarded.”
“Given the expectations of QE market is likely to go short at higher levels in Euro, and the selling pressure at higher levels would be very high. The trend on all time frames remains down. The next important support for Euro is at 1.1210.”