EUR crosses

EUR/GBP, EUR/CHF maintain bullish momentum

This is a fairly significant move taking place in the market at the moment with the EUR maintaining its bullish rage, this time mainly against the CHF and the GBP. EUR/JPY has consolidated below 120.00. I think there is more come, especially against the CHF, although as always in steep trends we need to be wary of sharp pull-backs. I will run through the important levels in the crosses later this morning.

Mr Bernanke will speak in an hour and that is certainly the next big risk event.

  1. Hi Sean,
    Barrier options at the upcoming big figures could be an interesting factor. Perhaps good to buy on dips and, if profitable, add slightly above the next big figures to take advantage of the probable momentum ignition by option players? Haven’t heard any barrier rumours yet, but I can imagine EUR/CHF was an attractive instrument for exotic derivates traders. What do you think about this?

  2. Morning Milan, I think the market has totally missed this move and we will be at 128 very quickly, barriers or not. Plus big players aren’t stupid and won’t defend levels in face of a strong trend. Option players were big buyers over last 24 hours and I think many have been caught with lop-sided books

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