Is The EUR/USD About To Begin A New Journey?
Having embarked on a USD-journey for
quite some years now, I realize that this journey is probably not going to stop
before the end is nigh. Along the road, however, the luggage has
changed and probably will to some extent in the years to come.
Till the end I will though refuse to let go of my contrarian
stance. I will not buckle to conventional wisdom. A “wisdom” that at present
lets everybody, who endures listening, know, that the coming days in the absence
of economic releases of substance will be comparable to one long stroll in the
desert.
Please do not believe them. Remember that the financial
markets do have a life of their own. They move in recognizable patterns
regardless of economic releases, major political events, demand or supply
disruptions etc. etc. The constant seek of cause and effect is mostly of no use
when trying to trot along
and stay alive in the financial marketplace. Hence the dollar could very well
embark upon a new and unexpected journey without any remarkable economic numbers
on the horizon.
After having been rejected at the good resistance area around
122.50 yesterday, the EUR/USD is now on the route towards the previous bottom at
121.25. A break here and 120 could be on the agenda in a twinkle. The dollar in
general is getting a boost this morning. USD/JPY is about to break away from the
good resistance at 110.60,. AUD/USD is on the verge of breaking back below the
75 threshold and so on and so forth. Be prepared for a dollar rise that most of
the market participants do not expect right now. Watch EUR/USD closely – a break
below 120 will trigger huge stop losses.
Lone Olesen
Lone Olesen is a Senior Forex Strategies for Jyske Bank
based in Denmark. Ms. Oleson is antive Forex trader with nearly 20 years of
experience in currency futures.