Good morning,
This morning the EUR is down approximatively 100 pips from where it opened in Asia.
Of note, dovish comments in italian newspaper "La Stampa" from ECB President Trichet that a majority of the ECB Governing Council is still in favour of keeping the sovereign bond purchasing program in place. Referring to the ECB’s mandate for price stability he said that raising the inflation target would be “disastrous”, and that he was also “completely against” the idea of raising inflation expectations.
This comments counter those of Mr Axel Weber, who's expected to replace Mr. Trichet at the end of his mandate, since he was in favor of a gradual exit of stimulus measures sooner than later.
S&P500 futures are also lower by 6.5 points since NY close, and it seems to me that they will take the same path lower as the EURUSD, initially targeting 1133.
Technically, in EURUSD I see strong resistance area starting @ 1.3935, but much stronger in the 1.3975-95 zone, where I will try to go short. The target on this trade will be 1.3800 and the Stop Loss will be at 1.4060.
I will post further comments as the day evolves.
Good Luck
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