Johanes

EURUSD REACHED 15 % WIDTH OF MED TERM TARGET ZONE

Short
Johanes Updated   
FX_IDC:EURUSD   Euro / U.S. Dollar
THE FED RES OF NEW YORK AND THE ECB MANAGED THE WIDTH OF MED TERM TARGET ZONE OF EURUSD FOR 15 % BY REACHING 1.1984/1.2000 AS PERMITTED BY THE MONETARY POLICY. THE PREVIOUS TRICKY TURNING WAS AT 1.1887 OR ABOUT 100 PIPS BELOW. AFTER REACHING THE 15 % WIDTH OF BAND, THE FED AND THE ECB WILL MANAGE THE EURUSD DOWN FOR 7.5 % - 8 % AS PERMITTED BY THE MONETARY BY UNDERTAKING MARKET STERILIZATION. THE EUROPEAN ECONOMY ALREADY IMPROVED AND ACCELERATED AS CONFIRMED BY THE MEDIUM AND LONG TERM ANNUALIZED GDP BAND AND INFLATION BAND, HOWEVER THE FINANCIAL RISK IS STILL FACED AND BEING TACKLED BY ASSET PURCHASE PROGRAM TO PROVIDE LIQUIDITY INTO THE ECONOMY. AT SUCH, EURUSD IS PREDICTED TO BE MANAGED TO CENTRAL BAND/CENTRAL PARITY OF THE CURRENT MED TERM TARGET ZONE AND WIDER AND NARROWER SUBJECT TO FUTURE ECONOMIC AND FINANCIAL STABILITY IN SHORT TERM.

THE FOLLOWING TRADE IS RECOMMENDABLE (SIMILAR TO THE PREVIOUS RECOMMENDATION)

SHORT EURUSD 1.1975/1.2000
STOP LOSS 1.2200
TARGET 1.1200 (800 PIPS)
DURATION: 3-5 MONTHS
RISK TYPE: LOWER RISK

NOTICE

FX TRADING CARRY THE HIGHEST RISK OF INVESTMENT. BOTH TRADERS AND COUNTER PARTIES TO TRADE HAVE DIFFERENT VESTED OF INTERESTS ON THE EXECUTED TRADING POSITIONS. FOR ALL TRADING POSITIONS, WHILST TRADERS LOOK FOR PROFIT FROM THE EXECUTED BUYING OR SELLING (IF WINNING) VERSUS THE COUNTER PARTIES TO TRADE LOOK FOR PRIME SOURCE FOR PROFIT FROM THE “EXECUTED STOP LOSSES” (IF WINNING), A “ZERO SUM GAME”, THE WINNER OR THE LOOSER. NO DOLLARS FOR FREE.

UNDERSTANDING THE COUNTER PARTIES TO TRADE IS ESSENTIAL. THE COUNTER PARTIES TO TRADE ALSO CALLED LIQUIDITY PROVIDERS AND THEY ARE FX PRIME BROKERS OR DEALERS AND WORLD’S LARGEST AND MOST PROFESSIONAL FX MANAGERS (CARRY TRADERS AND MOMENTUM TRADERS). THEY ARE WORLD’S LARGEST BANKS, INVESTMENT BANKS, SECURITY DEALERS AND UNDERWRITERS, CUSTODIAN BANKS, AS WELL AS FX FORECASTERS. THEY ARE SHAREHOLDERS AND SETTLEMENT MEMBERS OF THE CLS BANK, THE SETTLEMENT BANK FOR USD, JPY, EUR, CHF, GBP, CAD, AUD, NZD, KRW, HKD, SGD, ILS, NOK, SEK, DKK, HUF, MXN AND ZAR.
Comment:
EURUSD REACHING 16 % WIDTH OF BAND (15 % + 1 %)
Comment:
ASSET DISPOSAL MADE BY THE USD INVESTORS ON EUR AND EUR-DENOMINATED DEBT SECURITIES ON THE WORLD'S LARGEST VOLUME OF TRADE EURUSD MAY LONGER THAN EXPECTED. USD INVESTORS FACE DIFFICULTY TO LOOK FOR THE OFF-TAKERS. THE DIFFICULTY TO LOOK FOR LARGE SIZE OFF-TAKERS MAY CAUSE EURUSD TO MOVE SLOWER THAN EXPECTED TO DOWNWARD IN FAVOR OF THE CENTRAL BANKS FOR PRICE STABILITY. HOWEVER, THE 8 % OR 800 PIPS OF EXPECTED TARGET IN 3-5 MONTHS STILL OPTIMISTIC.
Comment:
THE MEASURED MEDIUM TERM PRICE STABILITY FOR EURUSD ALSO COULD BE TRADED BY HIGH FREQUENCY TRADE AS ILLUSTRATED ON EURCAD TO DOUBLE AND TO TRIPLE OR MORE OF THE PROFIT EXPECTATION FROM THE TARGET ZONE.
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