The eur/usd 30 and 5 minute charts show an interesting formation around .9880 , as though the volatility were subsiding until a decision is made on which way to send the euro. My bet is that it falls ( short 5000 eur/usd from .9878 , stop @ .9905 ).

I want to determine what's at the root of these second thoughts towards the euro. It's been attributed to the deficits issue , but I wonder whether the reason isn't that traders had begun appraising a euro at parity when the buzz was on two weeks ago and they are now discounting it.



current trades :

short 10,000 usd/jpy from 117.53 , stop @ 117.90, targeting117.05

short 5,000 eur/jpy from 116.24 , stop @ 116.45

short 5,000 eur/usd from .9878 , stop @ .9905

Bal: 100,000 ::: P&L: 0 + ( -30.37 )

short USD 5,061 , EUR 10,000 ::: long JPY 1,175,210