7 May Trichet, trichet......rest well.

indeed nobody knows in a way where USD is heading. Just as Nicole Elliot was ranting on national TV that she does not know where USD is heading, to 1.5000 or 1.6000.

meanwhile, Euro went higher than my forecast of 1.5550 to 1.5600 and now down to touch 1.5400 which I expected. I saw the bounce from 1.5360 to be just a bounce.

I am calling for a challenge of 1.5360 again, and touch 1.5330.

Long Euro 1.5330
Target 1.5900
Stoploss 1.5300

This holds for today. Tomorrow would be a different call.

Would update my subscribers once I see a new call.

If you agree with my call, click on the Google Ads.

Update 10:40 am ET
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indeed Euro falling back as what I have predicted since Monday, and mentioned to my subscribers. The NFP bottom would likely be broken for a new low. I see a low at 1.5330.

The future of Euro hinges much on what Trichet is going to say tomorrow.

If Trichet utter pigeon talk, then Euro would tank towards 1.5000. And it signals the onset of Europe slowdown, a lag against US. And unfortunately, an admittance of lost against Inflation.

I read that Americans are queueing up at St John free meal outlets in increasing numbers. Most of the new people are actually working adults who find it unaffordable a 10 dollar breakfast.

Cutting rates only marginally improve export, for those less competitive industries. However cutting rates have an immediate impact on raising prices of imports, agriculture, commodities, oil, skills compensation. Foreigners expect a higher salary to compensate for the dropping Euros.

When inflation arrives in Europe, it is going to be a horror scenes, with strikes, riots everywhere. the first places to burn would be France and Italty.

Europe has slowed before, it was still in slow growth way back in 2005, when US was already in wonderland.

However when Europe ends up in Inflation, it is going to be back to Austrian days.

Probably Trichet would have a difficult time sleeping tonight.

I dun know what you are going to say, but I know how the market is going to react.