QUOTE(alberto86 @ Dec 24 2006, 12:52 AM)
I am hearing a lot of option expires for next week, most of them call options above 1.3400 so that is going to make the market in the EUR/USD with an upside bias, since the option market is really driving the market sentiments nowadays.
Markets are very thin today, so we can have a lot of volatility and swings. Yesterday the 10 year not yield plummeted after the Philly Fed Index, something that is clearly marking the market sentiment towards the dollar and the future moves of the FED.
Technically speaking the downtrend in the dollar is pretty much in place, but we need to see a break of the recent ranges in the majors, i.e. 1.3370 in the EUR/USD, that would make the market to gather momentum and we may see large players like Hedge Funds stepping in with the flow and making the trend gather more strength.
I am going to advice some orders within the recent ranges in the majors, to anticipate the break.
Have a great weekend, and a merry Christmas
Thanks for sharing Albert. Glad to have a FOREX expert around.