Are Liquidity Providers Holding The Cards Yet?
Last Nights Tokyo Forecast yields more than 150 pips profit
Immediate support is 3241, then 3183-3162 and immediate resistance is at 3317
Any break of 3157 and the eur/usd rushes to 3089/69 and then possibly 2990
Above 3343/57, the roof is open to 3434, 3510-3577 with pure exhaustion at 3678/3737
Buyers may appear below or at 3177-3197 level with a stop at or below 3141/17 area.
In my opinion, the currency is tired and looking for fresh impetus. This may come in the form of a political event, a surprise announcement from the ECB or BoE or a catastrophic event. Below 3200 there is SIGNIFICANT support and NOISE. Above 3370 the roof is open! This tells me this zero sum game is nearing some questionable consolidation followed by a serious price move.
I have not assessed the direction and I am not going to issue a forecast. I am in stand-down mode for now. Forex traders may consider trading breakouts of my recent forecasts.
Whenever there is a wedding – there is a reception. When there is a reception and much fun – it ends with all the friends and family parting ways; usually for a serious hangover or some type of empty feeling. It is common for someone to get mad after a ton of fun. That time is near and I am not so sure that the wrong guys are NOT holding the bag. I anticipate further churning and some whipping.
If you followed my forecast last evening, you must be pleased. My most recent bear and bull forecasts are still technical. I know I was early on the scene with the reversal but that’s what happens when the deck gets stacked. I don’t consider FX trading as a gamble or a good bet – it’s strictly serious business in my view. I need quality of trades – not quantity.
I am in stand down mode until this level of what may likely be brief consolidation gets snapped. I don’t like to trade within the noise, I like to trade outside of the noise. Keep your ears open and follow the map.
Britt Maras – Senior Currency Strategist
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