Draghi Smacks the Euro

EURUSD Hourly 060513Good Morning, Friends. Those who are short EUR/USD, which has been in a relatively narrow 1.2950/1.3250 range for the past couple of weeks, got some assistance this morning as ECB President Draghi observed during a speech in Rome that he and his colleagues are ready to act again. His reference was to the Bank’s lending rate, which was reduced from 0.75% to 0.50% at last week’s meeting. I don’t really see this as a reason to get short, but it would cause me to bail if I was caught long by the headline, and that seems to be what’s occurring now.

EURUSD Daily 060513The move has been good for about 55 pips thus far. I continue to lean short as long as 1.3250 holds to the upside. There was some potential support at 1.3065 which has now been chewed through, but the next major level as I look at the daily chart may be 1.2950 (1.2954 was the recent low on April 24). If I was looking to establish a new position,  I’d be inclined now to wait for a move back to 1.3150 before nibbling.

Best of luck!

About the Author kevin

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