Oops...Euro Collapsed

ECB president Trichet:
"The present high probability which is given for an increase of rates in our next meeting does not correspond to the present sentiment of the governing council."


Here are the summary of the ECB press conference following the rate decision:

* Key interest rate left unchanged at 2.5%
* Not a high probability of rate hike in May
* No mentioned of "vigilance" on inflation
* Sounded less hawkish than the market had expected

So, after 66 hours of buying frenzy, the euro finally eases back. A potential short swing trade from here, I reckon.

64 Hours and Counting

Euro is currently trading above 1.2300 level ahead of the European Central Bank rate decision. The bounce off of Monday's low has evolved into a buying frenzy.



Looking at the above chart, I wish I was in the market 64 hours ago! More chart analysis here, here and here.

Euro Breakout

Comments from various parties as euro strikes two-month high against dollar:

"We've seen this breakout and it's not just a function of dollar weakness but it is also supported by genuine euro strength."

"We are near a point this month that could see the early arrival of the weak dollar trade."

"There's still appetite from central banks around the world to continue to diversify out of dollars."

"Probably there will be an expansion of the current range that we've had -- $1.19 to 1.22 -- we could probably trade as high as $1.23, but before the payrolls report on Friday, I don't think we'll see too many more gains in the euro."

"In the second half of the year when the Fed is done, we'll see some real pressure on the dollar. We're looking to sell more dollars.''

Forex Trading Contest

Just found out that there is a forex trading contest that you can enter for free. Although the contest is already into Week 4, there are still prizes to be won for the coming weeks. It would also be interesting to know how you fair against others at the end of each trading week.