Tuesday, February 10th, 2015

SpotEuro Forex Daily Outlook October 18, 2010

SELL-OFF or CORRECTION. The current price movement has definitely confirmed only one thing — volatility will continue to reign supreme. The move in favor of the dollar is most likely another correction before a likely retest of 1.41 and then a go ahead to 1.45. The question at this point is how long will this correction last and how deep will it extend. Will it move below 1.3770? If so, then the reversal we’ve been expecting may be beginning. Until that level breaks, we remain bullish on the euro in the short term. On the news front, we continue to read the same stories, mostly about QE2 in November. Most likely, this will cause the dollar to lose ground, but only for a little while before reversing direction when traders panic and send funds across the pond, strengthening the dollar on safe-haven flows. The panic we refer to will stem from the fact that other economies are behind the curve and the worst isn’t over yet. If the Federal Reserve disappoints market expectations for increased monetary stimulus, the dollar rally may ensue.Don’t forget, we will be hosting Live! Trading sessions this week. Premium members may access the direct link in the “Members Downloads” section. The room will be open 15 minutes prior to trading. If you’d like a more detailed analysis with potential trade opportunities during our live trading session, please join us in the member’s area.

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