6E 12 12 (1 Min) 06.06.12

 ECB Min Bid Rate  Comments Off on 6E 12 12 (1 Min) 06.06.12
Jun 062012
 


6E 12 12 (1 Min) 06.06.12

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.

6E 12 12 (1 Min) 05.03.12

 ECB Min Bid Rate  Comments Off on 6E 12 12 (1 Min) 05.03.12
May 032012
 


6E 12 12 (1 Min) 05.03.12

5/3/2012 ECB Minimum Bid Rate (0145 HI time / 0745 EDT)
Forecast: 1.00%
Actual: 1.00%
SPIKE/REVERSE
Started @ 1.3147
1st Peak @ 1.3161 – 0146 (1 min)
14 ticks

Reversal to 1.3147 – 0148 (3 min)
14 ticks

Notes: The ECB decided to leave the Minimum Bid Rate unchanged at 1.00% in line with all economists expectations. Mario Draghi did not hint at any move, and stuck to the baseline scenario of recovery Where LTRO is allowed to run its course. With little mystery before or after the rate announcement, the 6E made a quick jump for 14 ticks crossing all 3 major SMAs and the S1 Pivot, then fell to the starting point 2 bars later with nothing in the news able to sustain the bulls and the resistance powerful. With JOBB you would have filled at about 1.3155 with about 1 tick of slippage, then had an opportunity to close out with a few ticks at the S1 Pivot. With all the indicators there as it stalled on the gain, get out before it reverses. Notice the drop after the Press conference started at 0230, followed by a 30 min strong rally. This was due to the eventual realization that the ECB was not acting in any fashion to ease.