FXstreet.com (Barcelona) - According to Geofrey Yu, FX strategist at UBS, "Markets are trading on a generally buoyant note as investors seek to consolidate yesterday’s gains. Prompted by rising hopes of greater ECB intervention in the current debt crisis, risk has rallied and the EUR has returned to levels just under 1.2300."
You explained that ECB President Draghi triggered a short squeeze in EURUSD with his assertion that “to the extent that the size of these sovereign premia hamper the functioning of the monetary policy transmission channel, they come within our mandate. Within our mandate, the ECB is ready to do whatever it takes to preserve the euro”. He warned “believe me, it will be enough”.
"The sharp rally has seen the momentum turn higher, suggesting the risk is for the strength to continue. Resistance is at 1.2402, support lies at 1.2118." He forecasted.
You explained that ECB President Draghi triggered a short squeeze in EURUSD with his assertion that “to the extent that the size of these sovereign premia hamper the functioning of the monetary policy transmission channel, they come within our mandate. Within our mandate, the ECB is ready to do whatever it takes to preserve the euro”. He warned “believe me, it will be enough”.
"The sharp rally has seen the momentum turn higher, suggesting the risk is for the strength to continue. Resistance is at 1.2402, support lies at 1.2118." He forecasted.
