Thursday, April 12, 2007

Trichet Is Next

Salam,
I missed to trade last night because....I was so sleepy.
Anyway, I'm looking forward for ECB's Trichet press conference at 8.30 tonight. In order for the euro to make a run for its all time high of 1.3667, we need to hear some strong words from Trichet. Not only does he need to suggest to the market that rates will be increased in May, but he also needs to indicate that rates will be increased beyond that as well.
If Trichet still use 'strong vigilance' in his speech, I expect euro to rally, all the way to break 1.3500 FIRST. Could be beyond that if momentum is strong enough.

Honestly, I'm a bit sceptical to long euro at this moment.

As an export dependent region, the Eurozone is particularly sensitive to the value of the Euro. I think Trichet will play safe, the higher exchange rates will dampen the export sector, and the economy at the large extent.

And my three timeframes and setups are alarming me that the downfall maybe just around the corner.

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