Good morning traders.
Quick update this morning as I´ll be heading to the mountains in a couple of hours.
Yesterday I wrote about what to expect from Draghi and his compadres and it seems it will come to pass as the infamous ´sources´ have been out on the tom toms already suggesting LTROs and revised lower economic forecasts. Dovish as she goes it appears but always best to wait to hear it directly from the man himself.
We had a fairly quiet day yesterday (again) with little in terms of tradable price action aside from a quick dip into our support on the ´sources´ and a scurry back up the charts thereafter.
I´m hoping this ECB meeting will unlock some volatility in the eurusd so we can get back to some decent trading. If not I guess we´ll have to stick to what we´re fast becoming experts at – low vol range scalping!
Don´t forget we also have NFP tomorrow to add to the mix.
One last thing: although everything points to a dovish ECB which logically suggests lower prices for the eurusd as divergence with US mon pol widens be prepared for the opposite! When everyone and his dog is short, long is often the better play. Forewarned is forearmed.
I´ll be back a week on Monday!
No charts today as nothing has changed from yesterday. We know the levels and possible targets above and below – its all down to Draghi.
Have a good day and I´ll see you in a week or so.