Written By: Pauly @SPZ_Trader
Thursday is ECB day (European Central Bank) and should be interesting as far as “price action” goes for the Euro. The recent nosedive with nary a pull up on the stick ominously reminds me of last December (2015) when the euro could not find a bid to save its life. With that thought I am reminded of the infamous Yogie Berra line, “its Deja Vu, all over again“.
Last December, I remember calls of Euro at 102, par, 98, and beyond. The market expected an announcement of Quantitative Easing. Mssr Draghi did not disappoint. Only problem was just that, “everyone expected“, so there was no one left to unload the goods to on the announcement. The euro commenced to make a new marginal low, and then took off like a scalded dog rallying more than 350 pips in the same session.