EUR/USD Strong Gains Explained

[Guest Kittyraj]

Forex traders continue to believe that the European Central Bank (ECB) will intervene in the Bond market and cap Bond-yields in financially distressed countries. EUR/USD to our great surprised gained 1.15% from 1.2341, riding the bruised stops to the daily high of 1,2486. It appears the prime reason for Euro-dollar strength is traders exiting short trades rather than fresh long positions. Forex traders minimized their exposure to the Euro as they fear the ECB, but note declines may be larger than usual should the ECB fail to meet market's expectations. We will wait for the ECB monetary policy on 6 September. Intraday risk is for a bullish flag on hourly charts, key price level is 1.2486.

Focus for today will be on US economic data at 14:00 GMT (Existing home sales) and the Federal Open Market Committee (FOMC) Statement at 18:00 GMT. Traders will be searching (yet again) for hints that they may consider further easing measures in the next monetary policy meeting.

Greek Prime Minister, Samaras is due to meet Eurogroup chairman, Jean-Claude Juncker in Athens. Greece is likely to ask for more time to meet its fiscal goals as we expressed in recent market reviews. The results of the meeting will be the key driver for today's session, especially when trading EUR/USD.

[Obsidian 10]

careful Kittyraj, you are one week behind

[Guest Kittyraj]

Day by Day i wil update the status.....