A high volatile week has passed and EUR going in just one direction through the day became luxury. Going up and down then up and again down and... this was eveyday as big players try to hit any stops placed. Now EUR is trading @ 1.4130, and in early Asian session it reached 1.41 then bounced a little. There will be important news from Grece tomorrow, so watch the news.There are many LONG positions opened in the area between 1.4060 and 1.4100, their SL are below 1.40. Today we have the potential to break the area 1.4060 and to go to test 1.40.
For today my forecast is SHORT below 1.4170 with target the area between 1.3970 - 1.4000, take profit where you decide. Remember 2 things, there will be hit huge SL below 1.3970 and if breached we shall go even below 1.39. Next week is the ECB interestrate decision, Mr.Trichet has promised to hike the rate, so be carefull when leaving your SHORT overnight.
Last week the experts forecast on FXSTREET was completely busted except 2-3 of them, all have forecasted going to 1.40 and below, but we have hit 1.4430 instead and have closed the week near 1.42. Trading will remain nervous for the week again with many ups and downs. We have a triangle formation from the beginning of May @ 1.4940 and the low osf May @ 1.3970. Downbreak of 1.4100 will exit the triangle and then we ar going to test 1.3970. If that is breached on and bad news from Eurozone we may even go to 1.3600 but ahead ECB rate hike this is less possible.
My future scenario is going to 1.39 or a bit below then up again to 1.4440 and then ending @ 1.42, after a month or a little bit more then a test of 1.45 and if it fails again we are going some 1000 pips down back in the major downside channel.
2 weeks of high volatility are expected, be carefull when placing STOPS.
Any comments and questions are welcomed.