I pretty much got the sound bites spot on for Draghi, but that didn’t help my trade one little bit.
A little euro inflation trade ahead of the ECB.
I had my stop up at 1.3620 to negate any talking swings and also added to the position at 1.3550 and 1.3588. The trade isn’t large so I’m happy to wait it out and see if we reverse the moves. If we are up on the Italian government vote then I think it’s a bit overblown.
We’re back down to 1.3580 and the area of resistance earlier, so there may be some minor support. I’ll massage the trade as I see fit as I’m not overly keen being long dollars at the moment.
USD/JPY is looking a very soft again and doing one of it’s “die a slow death” routines. Bids are likely to come under at 97.00 if the bleed continues and a break there might sees us drop more rapidly as stops get hit.
We’ve carved through the broken May res line and the July line is at 96.93. Beneath there 96.72 represents the August low and then it’s the 200 dma at 96.44.
USD/JPY daily chart 02 10 2013
