Rinse and repeat with EUR/USD
Chart 1. Used with permission from Bloomberg Finance LP, as of 30 April 2018.
Last Thursday’s (26 April) European Central Bank (ECB) meeting has provided EUR traders a tad of momentum to have EUR trade down to a 1.2055 low on Friday (27 April) – incidentally, this filled our tactical 1.2240 short’s take-profit level.
ECB president Mario Draghi did not exactly give major market cues, but it is that clear the break of the near-term 1.2155 technical pivot prodded some stale EUR longs to bail out. Commodity Futures Trading Commission (CFTC) data shows a large EUR long contraction for the week ending 27 April (by as much as USD3.5b), after EUR longs hit a record net long recently (17 April CFTC data).
The apparent message from the ECB: They are pondering, rather than deciding.
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