Has Draghi tipped off the coming Fed hike by aggressively downgrading euro area inflation and growth forecasts to counter any strength ensued by the hike?! Well in any case, now we know it for sure that ECB wants euro lower and we need to trade it accordingly. Any good bounce need to be sold until Fed shows us the path ahead.
Dollar index is sitting right at the resistance, which means EUR hanging next to the support. From risk reward perspective, and taking expected volatility into the account during NFP release today, we are looking to sell euro higher near 1.1280. It would be interesting to see whether euro is even able to cross 1.1200. But seeing it above 1.1200 provides good edge to us than chasing it down here. These euro levels dovetails well with dollar index support levels near 95.50 and 95. Besides it will be a long labour day weekend for USA, so any extreme move might be faded quickly and we need to trade accordingly.
Dollar index is sitting right at the resistance, which means EUR hanging next to the support. From risk reward perspective, and taking expected volatility into the account during NFP release today, we are looking to sell euro higher near 1.1280. It would be interesting to see whether euro is even able to cross 1.1200. But seeing it above 1.1200 provides good edge to us than chasing it down here. These euro levels dovetails well with dollar index support levels near 95.50 and 95. Besides it will be a long labour day weekend for USA, so any extreme move might be faded quickly and we need to trade accordingly.