The US
Dollar is resurgent in recent times. It has taken on new life against such as
the Japanese Yen and the Aussie dollar. The Euro, however, is not suffering the
same fate against the US unit. EURUSD has been resiliently straddling its 200 day moving average, which
is the centrepiece of a sideways channel, since early April:
This is
worthy of note. The Eurozone economy is not exactly setting the world on fire; Sr.
Draghi, chairman of the European Central Bank (ECB), just recently announced a reduction in the main interest rate, and there are expectations of more to come.
As the old
investing saw has it – “Do not fight the tape”. OK, the tape is now so many
electronic pulses but the principle is still the same: if the price stays up
for reasons you are not aware of, you abide by what the price is telling you, and not your expectations of what “should” happen.
This is what the Omicron Silver Trigger algorithmic routine does, to good effect.
This is what the Omicron Silver Trigger algorithmic routine does, to good effect.
If it were
deemed essential to speculate on the causation of the sticking power of the
EURUSD pair around the 1.30 level, this writer would have to suspect intervention
in the market, in one form or another. They have done it before and very often
just a series of well-timed phone calls by the ECB to a number of dealing
desks, inquiring about the ASK, can do the trick.
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