THe EUR/USD forex pair is wondering where it belongs - below or above 1.29, so its just hanging around there. It is quite possible that the Cypriot government finds a solution for the banking crisis there - probably during the weekend. Some forex traders are already loading up on euros expecting to profit from a big jump on Monday. I, like the EUR/USD currency pair, am of two minds about it. I will be staying out of the market for now.
For approximately 14-15 hours the market was trying to get the eur.usd pair of currencies break above the key level of 1.35. According to ForexLive the reason for the tenacity of the defenders of this level is that there was a 1.30 - 1.35 DNT (do-not-touch) barrier forex option put in place by an Asian Central Bank (how about the Chinese one?). Anyway, that level is history now, and we are looking towards 1.36 and beyond...
It looks like the GBP/USD currency pair has broken a key level. It formed a double bottom and I'd personally be looking to short it. It would be nice to put in a few forex options trades with strikes as low as 137.
I like trading options because my downside risk is limited to the so-called premium (which is essentially the price). At the same time, the profit potential is unlimited. When I say forex options I mean just plain vanilla put options, no butterflies, no condors, no double-touch fancies, no binaries, etc.
It's Monday and as usual on Mondays not much is happening on the forex market. The euro dollar pair went down a few pips, came back a few pips and is pretty much where it took off at the start of the European trading session.
What can we expect this week? The most important financial event that will probably impact the EUR/USD forex pair is rate decision of the ECB on Thursday.
Until then, zzzzzz.
Forex news: The euro currency is is down a bit this Tuesday as attention has changed back to the tax-dodging Greeks after Eurogroup President Juncker stated that there is some possibility European officials and the Greeks will come to an asgreement this very evening. Hurrah!