EUR/USD ahead of ECB June 5

Google+ Pinterest LinkedIn Tumblr +

Almost a month has passed since the last meeting of the ECB. May 8, the Forex market caught the Draghi comment: “ECB open to intervention in June if needed “, but as the famous quote goes: ” Buy the rumor, sell the fact “, and now it looks like a rumor and still not a promised fact, true or false we’ll see. Just the market has been needed of a little cooldown. 27 May the results of European Parliament elections, have not given EUR to rise up, due to increased the number of euro-skeptics.

June 5 most traders waiting anxiously. Will Draghi add the negative deposit rate or interest rate cut? As for me, I do not think that negative rate is the best way to beat the deflation.

There are 2 scenarios in my point of view:

  1. At a meeting of the ECB (5 June) contrary to all expectations, it wouldn’t be any surprise to us. As a result, the promises made by Draghi at 8 May will not be fulfilled and the pair will fly up.
  2. EUR price, as usually happens, will go up before ECB meeting (we have a whole 3 days in reserve), but then if Draghi makes a surprise for us – collapse, as market expectations come true.

In my case, I stand in longs on EUR/USD. A good stop 1.3450, but I do not have such opportunities (I mean equity), so my possible loses are placed at 1.3540. EUR anyway, at this point seems to me to be more attractive than Dollar. So, speculators, I am with you. Little correction is a must, but I hope and looking for a good smashing pullback. For better sell, need a higher price.

EUR/USD D1 Chart

EUR/USD D1 Chart, June 2 2014

Share.

About Author

Hi, Friend! My name is Gran Layson. I am an experienced currency and stock trader from Europe. If you want something to be done well, do it yourself, therefore often I feel myself as “Swiss Army Knife Man”. I am the Intomillion’s website administrator, developer ... read more

Comments are closed.

Forex Brokers
  • We believe in what we do

    Since the foundation of the project, we have been trying to turn one Dollar into a Million. Many dollars were lost on the way to the cherished goal. Nobody said it was going to be easy. However, we believe that everything is possible. Each time we lose a Dollar, we start again stronger with more experience and dedication. Today the project is much more than just about a Dollar. Our philosophy is openness and transparency. So apart from trading on Forex, we are creating a variety of useful Tools, sharing our developments, ideas, and experiences with our followers. We are true fans of financial markets and looking forward making trading more understandable and showing that profitable trading is possible.

All information on this page is subject to change. Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Intomillion.com owners and affiliates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.