6/6/2012 ECB Minimum Bid Rate (0145 HI time / 0745 EDT)
Forecast: 1.00%
Actual: 1.00%
SPIKE/REVERSE
Started @ 1.2517
1st Peak @ 1.2532 – 0146 (1 min)
15 ticks

Reversal to 1.2512 – 0150 (1 min)
20 ticks

Notes: The ECB decided to leave the Minimum Bid Rate unchanged at 1.00% in line with all economists expectations. Once again Mario Draghi underdelivered after the hopium was leading traders to expect more action by the ECB. Draghi cited inflation being more of a concern than unemployment, market tensions, and weak growth. With little mystery before or after the rate announcement, the 6E made a quick jump for 15 ticks crossing all 3 major SMAs, then fell to the starting point later on the same bar with nothing in the news able to sustain the bulls and the resistance powerful. With JOBB you would have filled at about 1.2526 with about 2 ticks of slippage, but had no opportunity to close out with a profit as it spiked up and came down quickly. Look to exit with about 4 ticks loss at the 50 SMA where it hovered briefly before dipping for another 10 ticks. It drifted lower, then traded sideways up to the press conference. Then after the press conference, the 6E chopped lower for about 30 min.