King Mario is at cross roads, while the markets already knew that tapering-irrespective of what he would say-will surely happen, he was busy trying as much as possible to prevent the over-hawkish bull hawks from pushing the Euro even higher past the psychological April 2017 highs of 1.20. He tried to be dovish even mentioning that the current price of the Euro was somehow a barrier which prevent immediate tapering. It looks like investors across the globe were fixated on what he should not say and if he had steered clear of QE topic and talk of across the board-broad based individual country growth, investors would have still interpreted this as positive for the Euro. As a matter of fact, inflation was the only economic parameter which was revised lower as the Eurozone economy expanded. This was surely the anticipated event for this week and that is why if you didn’t clip anything, you should wait for dips before buying Euro, Yen and Gold. In the mean time though, there is wonderful sell opportunity in this currency pair.
Technically, there is a shift of momentum and Yen bears are jumping ship and buying it in droves while somehow dumping USD. In the monthly chart, momentum just changed direction with a series of lower lows in the 4HR chart confirming that moves down were in the offing.
I will trade as follows:
Stop Loss: 114.50
Take Profit: 112.70-Recent support zone
Have a good trading day.