AUTOREFRESH 
Now that the shorts are out of the way, EUR can drop
By Jamie Coleman || February 23, 2010 at 16:17 GMT
|| 7 comments || Add comment
EUR/USD is back on the defensive after comments from Gonzalez-Paramo seem to welcome the EUR weakness. The market is much less short on an intraday basis than they were just 30 minutes ago, helping open up the downside. 1.3520 stops remain in play. EUR/USD trade at 1.3536.
Have a dry weekend all 
can… but won’t…
EURAUD did a nice rebound considering it’s situation…
Hopefully…
alright big news zz, has started playing the short end cant wait any longer took a whopper of a loss on the long end, aggressive into the short end now…
Jamie any thoughts about the big sell off in Eur/Jpy? It has fallen almost 250 pips since this morning… No other pair moved so hard…
Who or what the heck is holding this euro up?????? AUD, NZD, CAD, all moving. Let’s get the show on the road EUR.
Kensai-Yields on the short-end of the US, UK and EU yield curves are all falling in the wake of the shockingly large decline in US consumer confidence. US 2 year note yields are below 0.84% while German 2-year schatz yield a scant 0.91%, the lowest in the history of the single currency. If anything, the market is signaling that the ECB is too tight, given current conditions with overnight rates pegged at 1%.
Low yields give Japanese investors little reason to move money overseas, which supports the JPY.
Last week’s hype has turned into this week’s reality. All the talk of Toshin, combined with the discount rate hike from the Fed helped underpin a wholesale move into USD/JPY longs. This week has been a tougher slog as much of that Japanese foreign investment goes to markets other than the US and the discount rate hike fades from memory.
Also prompting JPY demand this week is a large Japanese IPO as Dai Ichi Life comes to market.
Kensai: Anytime a pair moves over 250 pips and you can’t find a “real” reason why; translates into a perfect buying opportunity. As a matter a fact it’s a better trade signal then if 10 of the top forex traders told you to buy it.
The Fed raised the discount rate Thursday after the bell. Fridays action was fake because of the melt-up to the expiration, and then we had Mutual Fund Monday. This is the first day of real action to begin discounting the discount rate. I wouldn’t buy this dip. it may last a while. S&P is at 1094 and it could make it’s way down to 1050 before there’s a recovery. Tightening without having jobs growth or consumer confidence doesn’t mean that there’s a recovery around the corner, it just means that there’s infighting at the Fed. eur/jpy might make it into the 119s this week.