What’s being said in Germany
Commerzbank analyst Ulrich Leuchtmann wrote today the ECB has now formed a working group to prepare further measures. The theoretical possibility was discussed, but now it is clear that they will soon have a plan in the bag, which can be activated. Draghi has his finger on the trigger. This is a step forward from previous news and this pleased the market.
Purchasing government bonds is considered a last resort to avoid deflation, although some still believe that purchasing corporate bonds is the way to go. Markets would very much love that.
Thomas Meissner of DZ Bank was satisfied with Draghi’s statements saying that looking at the bigger picture we currently see no reason in our Governing forecast to change anything: The interest rates remain at their current low levels, and government bond purchases on a large scale is likely to start fully in the next year.
Germany to keep growing if political risks don’t worsen is a decent article too.
Today’s Trading
We wanted a catalyst to burst through overhead resistance, we got that. We extended as high as mid 94xx before retracing almost completely and settling somewhere in the middle. Intra day on the 5 minute chart I have a sell signal, 30-minute chart looks bullish, 4-hour chart I still have a buy signal and the daily chart is clearly bullish too.
I have closed my trade and am waiting another opportunity to go long, but feel we are currently a little inflated, I need another pullback to a decent buy zone. Somewhere closer to 9300.
I wasn’t intra-day trading today, I have been swing trading this week, but most upside key levels were taken out. Friday will bring a bit more volatility with the NFP. I am predicting a big number and am considering a gold long fade move after the announcement and some USD longs.
Dax Trade Setup
Dax trade setup
