Newsletters discussed USD forming a bull wedge. Euro
futures forming an even nicer looking bear wedge on the 4hr and
60min time frames. Nice neg divergence on the 4hr, but not as
clean on the 1hr. I'll be watching....
Posted by lessarda on 21st of Jan 2011 at 03:47 pm
Goldman put a 1.37 target on the Euro/US$ cross when it was
trading in the 1.32-1.33 range early in the week. The
quick move towards the target shows they were on to something,
which may have been seeing heavy call selling up in the
target range combined with heavy
put buying closer to the money at 1.32. Such a specific
short-term target by GS would make sense in that case, with the
idea that working against this bearish spread might be the way the
market (or Goldman) wanted to push. If so, we could see a flush out
near the target or even a throwover spike and then see whether the
bearish wedge forming now plays out. I would bet that GS will be
short Euro near their target.
USD and Euro Wedges
Posted by oops1e on 21st of Jan 2011 at 11:44 am
Newsletters discussed USD forming a bull wedge. Euro futures forming an even nicer looking bear wedge on the 4hr and 60min time frames. Nice neg divergence on the 4hr, but not as clean on the 1hr. I'll be watching....
Update - Euro Futures breaking wedge to upside!
Posted by oops1e on 21st of Jan 2011 at 03:11 pm
Goldman target = 1.37
Posted by lessarda on 21st of Jan 2011 at 03:47 pm
Goldman put a 1.37 target on the Euro/US$ cross when it was trading in the 1.32-1.33 range early in the week. The quick move towards the target shows they were on to something, which may have been seeing heavy call selling up in the target range combined with heavy put buying closer to the money at 1.32. Such a specific short-term target by GS would make sense in that case, with the idea that working against this bearish spread might be the way the market (or Goldman) wanted to push. If so, we could see a flush out near the target or even a throwover spike and then see whether the bearish wedge forming now plays out. I would bet that GS will be short Euro near their target.
oops1e -thanks for sharing the
Posted by steve on 21st of Jan 2011 at 12:08 pm
oops1e -thanks for sharing the currency charts.
nice charts!
Posted by vimal on 21st of Jan 2011 at 11:58 am
nice charts!