FXCM/DailyFX Signals and Analysis

[Jason Rogers]

CAUTION: Uncertain Landscape ahead due to Greek Elections Warrants Reduced Leverage

Greece is headed back to the polls this weekend following the inconclusive results of the May 6 parliamentary elections. Unlike the first elections, the June 17 elections have significant consequences tied to it that will likely result in exceptional market volatility. With the significant event risk expected to occur during hours FXCM’s trading platform is offline (17:00 EDT / 21:00 GMT on Friday to 17:00 EDT / 21:00 GMT on Sunday), Sunday’s open poses the threat of not only a significant gap, but spreads wider than usual as well. Accordingly, we believe that this is not the trading landscape to speculate, and we suggest reducing position sizes given the significant amount of uncertainty forthcoming.

To help traders make the best informed decision headed into the weekend’s critical event, please find below a concise summary of the likely outcomes of the Greek parliamentary elections, and for those interested, a fact sheet on each of the main parties competing in the Greek elections.

THE TAKEAWAY: June 17 Greek Parliamentary Elections > Outcome Could Determine Greece’s Fate in Euro-zone

There are two main parties vying for control of Greece’s government this weekend, the pro-bailout New Democracy party and the anti-bailout Syriza party. In a sense, and especially given the rhetoric deployed by non-Greek European leaders, these elections will determine the fate of Greece’s inclusion in the Euro-zone. It boils down to this: a vote for New Democracy is considered pro-Euro; and a vote for Syriza is considered anti-Euro.

We believe there are four likely outcomes to these elections, with the highest probability of a Euro-negative outcome this weekend. They are:

• SCENARIO #1: New Democracy wins elections and has parliamentary majority (> 151 votes) – EUR BULLISH – 10%
• SCENARIO #2: New Democracy wins elections but does not have majority – EUR BEARISH (least bearish outcome) – 45%
• SCENARIO #3: Syriza wins elections but does not have majority – EUR BEARISH (increasingly bearish outcome) – 40%
• SCENARIO #4: Syriza wins elections and has parliamentary majority – EUR BEARISH (most bearish outcome) – 5%

In light of these expected outcomes, we find it most likely that the elections will not yield the most bullish outcome (scenario #1), but instead, falling somewhere between the least bearish and moderately bearish outcomes (scenario #2, #3). We have derived these probabilities from recent poll figures as well as commentaries from citizens and reporters in Greece.

Recent Poll Numbers

Public Issue, one of the leading opinion companies in Greece, carried out a phone opinion survey from May 25-30 across a general population sample of 1210 adults from across Greece. The results estimated 31.5% support for Syriza, 25.5% for New Democracy, 13.5% for Pasok, 7.5% for Dimar. Compared to poll results from the week prior, support for Syriza had risen 1.5% (from 30%), fallen 0.5% (from 26%) for ND and fallen 2% (from 15.5%) for Pasok. The margin of error was +/-2.8 percentage points.

Kapa Research SA surveyed 1012 people for the Athens-based Ta Nea newpaper, in a poll conducted from May 29 to 31. The results estimated 26.1% support for New Democracy, 23.6% for Syriza and 9.9% for Pasok. Compared the last poll held on May 23-24, support for ND rose 0.3% (from 25.8%), rose 3.5% (from 20.1%) for Syriza, and fell 3.1% for Pasok (from 13%). The overall margin of error is +/-3.1 percentage points.

A Rass poll conducted for Eleftheros Typos showed 26.5% support for New Democracy, 24.2% for Syriza and 9.9% for Pasok.

For those interested in learning more about each of the main parties competing in the Greek elections on June 17, please find below a summary of New Democracy’s then Syriza’s platforms.

New Democracy – Platform Points

- Scale back taxes and boost jobs as part of an overall renegotiation of the country’s debt deal with its international creditors
- Replace some taxes, such as a property tax introduced last fall, with “fairer” levies
- Revoke cuts to lowlevel pensions and to the salaries of police and air force employees, as well as boost the job market
- Support low income households and small businesses that have been hit hardest by the debt crisis
- Help indebted households to repay their dues to banks
- Accelerate structural reforms and the privatization program, with the “rebirth” of the public sector with no mass layoffs of civil servants
- In regards to the €11.7 billion in public spending cuts that Greece’s creditors have demanded by the end of 2013, ND (Samaras) said these should be made gradually over the next four years
- Declaration of exclusive economic zones in the sea to exploit natural resources.
- Enforce a harsh line against illegal immigration

Syriza – Platform Points

- Creation of a shield to protect society against the crisis
- Unconditional guaranteed minimum income or unemployment benefit, medical care, social protection, housing and access to all services of public utilities for all citizens
- Protection of and relief measures for indebted households
- Price controls and price reductions, VAT reduction, and abolition of VAT on basicneed goods
- Disposal of the debt burden, specifically through:
- Moratorium on debt servicing
- Negotiations for debt cancellation
- Regulation of remaining debt to include provisions for economic development and employment
- European regulations on the debt of European states
- Radical changes to the European Central Bank’s role
- Prohibition of speculative banking products
- A pan-European tax on wealth, financial transactions and profits
- Income redistribution, taxation on wealth and elimination of unnecessary expenses
- Productive social and environmental reconstruction
- Nationalization/socialization of banks
- Stable employment with decent wages and social insurance
- Deepening Democracy: democratic political and social rights for all
- Restoration of a strong welfare state
- Immediate rescue of the pension system
- A rise in unemployment benefits
- The introduction of a guaranteed minimum income. “Diverse fragmentary reforms and policies must be united in a national system of guaranteed funds from the national budget. An unconditional basic income, accomodation with heating, electricity and telecommunications, food and clothing, transport, help at home, legal coverage and representation can thus become rights of all citizens.”
- Free health care, which will be financed through a Public Health System
- Protection of public education, research, cultures, and sports from the Memorandum’s policies
- An independent foreign policy committed to the promotion of peace
- Peace-seeking foreign policy
- Disengagement from NATO and closure of foreign military bases on Greek soil
- Aiding the Cypriot people in the reunification of the island

--- Written by Christopher Vecchio, Currency Analyst for DailyFX.com

[Jason Rogers]

Fundamental Headlines

- Dollar Shortage Seen in $2 Trillion Gap – Bloomberg
- Euro Chiefs Signal Greek Austerity Softening as Summit Looms – Bloomberg
- Egypt Islamists Claim Presidency as Army Tightens Grip – Reuters
- Greece’s Conservatives Start Coalition Talks – WSJ
- Spanish Yields Surge; Greek Relief Wanes – WSJ

Asian/European Session Summary

The Greek elections yielded the somewhat surprising result of a strong New Democracy victory, with the pro-bailout party garnering enough votes to be in the position to form a coalition government with the other major pro-bailout party, PASOK. Should this materialize, it will keep the anti-bailout party Syriza on the sidelines as the main opposition, but that is only likely to last for so long. Early reports indicate that PASOK will not form a coalition government without the inclusion of Syriza, whose leader Alexis Tsipras has already stated that his party will not be joining New Democracy in a “grand coalition” of sorts.

On a bit of speculation about how this Greek drama will unfold, as a politician, Mr. Tsipras is playing his cards well, as he appears to be in the game for the long haul. That’s to say that if Syriza were to have won yesterday, it would have only been by a razor-thin margin, one that would have likely deteriorated quickly should Greece have needed another bailout under his watch (they will in about a month’s time). On the other hand, with a strong showing, Syriza is now primed to garner majority support in a few months when Greeks return to the polls (assuming New Democracy and PASOK form a government), as the center coalition won’t do anything to materially change Greece’s projected path out of the Euro-zone.

As the Greek election results have been digested, it’s now clear that G20 leaders won’t unveil the nuclear option of flooding the markets with a few hundred billion dollars of liquidity to ensure price stability in the coming days. This was much of the reason markets rallied at the tail end of last week, and without the promise of more easing, much of the gusto behind the US Dollar’s decline has been quelled. This “snap back” to reality after the election has dragged the EURUSD from its highest level in three-weeks at 1.2747 to back under 1.2600 just ahead of the US cash equity open.

Primarily, with no easing on the way, investors have dumped Spanish debt en masse, with the 10-year note yield surging today to as high as 7.285%, after opening at 6.840%. These are the highest yields the Spanish 10-year note has seen since late-April 1997. On the shorter-end of the yield curve, the Spanish 2-year note yield climbed as high as 5.592%, its highest level since late-November 2011.

Taking a look at other European credit, Italian debt is under pressure as well, with 10-year notes yielding 6.057%, at the time this report was written, after rising to 6.173% earlier in the day. The 10-year note yield topped on June 14, when it hit 6.342%. On the shorter-end of the curve, Italian 2-year notes rose by 18.9-basis points to a 4.522% yield.

EURUSD 5-min Chart: June 18, 2012

Charts Created using Marketscope – Prepared by Christopher Vecchio

The Australian and New Zealand Dollars lead on the day, appreciating against the US Dollar by 0.22 percent and 0.34 percent, respectively. The Canadian Dollar is the worst performer, losing 0.42 percent against the US Dollar. After appreciating by as much as 0.88 percent, the EURUSD was trading 0.31 percent lower, at the time this report was written. The USDJPY was slightly firmer, gaining 0.22 percent on Monday thus far.

24-Hour Price Action


Key Levels: 13:45 GMT


Thus far, on Monday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading higher, at 10096.63 at the time this report was written, after opening at 10060.99 (the index closed at 10072.32 on Friday). The index has traded mostly higher, with the high at 10111.05 and the low at 10060.88.

--- Written by Christopher Vecchio, Currency Analyst at DailyFX.com

[Jason Rogers]

Fundamental Headlines

- Austerity Doesn’t Pay as Debt Markets Ignore Rating Cuts – Bloomberg
- Fiscal-Cliff Concerns Hurting Economy as Companies Hold Back – Bloomberg
- Europe Steps Away from the Edge; Will FOMC Ease Anyway? – DailyFX
- Greek Clash with Germany on Bailout Looms – WSJ
- Greek Parties Continue Coalition Talks – WSJ

Asian/European Session Summary

Market participants are lining up for more cheap credit from the Federal Reserve days before the Federal Open Market Committee announces its monetary policy on Wednesday. Despite mostly disappointing data from across the globe, led by a severely disappointing German ZEW Survey for June, investors have shaken off economic concerns in anticipation of an announcement of another major Fed easing package. The German ZEW Survey showed that German investor confidence plunged by the most since 1998 as the Euro-zone’s debt woes have trimmed economic growth prospects for the coming months. Regardless of the outcome of the debt crisis, the region is indeed headed for a steep recession.

Staying with Europe, the Spanish Treasury was selling shorter-term dated debt this morning, and the results were far from sanguine. €2.4 billion of 12-month bills were sold at an average rate of 5.074%, well-above the 2.985% rate paid on May 14. Similarly, the €639.3 million of 18-month debt sold at 5.107 percent, well-above the 3.302% yield paid in May. Despite these terrible figures – a clear sign that borrowing costs are rising sharply and that a bailout will be necessary soon if relief does not come – Spanish yields have improved across the spectrum: the 10-year note yield dropped by 10.4-basis points to 6.971%, while the 2-year note yield fell to 5.169%.

Largely speaking, the progress made by peripheral debt can be attributed to two hopes: first that the European Union will give leeway to Greece and work more closely for a mutually acceptable political path; and that the Federal Reserve will introduce another large quantitative easing package tomorrow. To dismiss such rumors about Greece’s bailout, it’s important to recognize and consider that Germany holds all of the bargaining chips in these bailout negotiations. In a speech yesterday, German Chancellor Angela Merkel said that there would be “no leeway” on Greece’s commitments, in sharp contrast to the hopeful comments made by an anonymous European Union official. As has been the case this entire crisis, what Germany says goes, and there’s little more to speculate on beyond that.

In regards to the Fed policy meeting tomorrow, Chairman Ben Bernanke will release the Fed’s revised economic projections as well as hold his quarterly press conference, in which the hopes for more quantitative easing in the very near-term should be dashed. Calls have been high for a QE3 package, especially among the Fed’s more dovish members such as Charles Evans (who last week stated that he would support any form of more accommodation), but it’s important to note that the Fed voting bloc has been a bit more conservative lately.

At his Congressional testimony a few weeks ago, Chairman Bernanke made it clear that the Fed would not fill the void created by the US’ irresponsible fiscal policy, and that the Fed could only do so much to achieve its dual mandate of price stability (with inflation near 2%) and maximum employment. Accordingly, we do not expect a full-blown QE3 package; but instead, we expect, at most, that the FOMC will announce an extension of Operation Twist. Similar to how markets reacted in September when Twist was announced, this could lead to a major US Dollar rally.

EURUSD 5-min Chart: June 19, 2012

Charts Created using Marketscope – Prepared by Christopher Vecchio

The commodity currencies are stronger on the day, with the Australian, Canadian, and New Zealand Dollars appreciating by 0.52 percent, 0.54 percent, and 0.59 percent against the US Dollar, respectively. The Euro has made a mid-morning surge against the US Dollar, with the EURUSD now up by 0.53 percent. The British Pound and Japanese Yen have underperformed, gaining 0.19 percent and 0.14 percent each.

24-Hour Price Action


Key Levels: 13:25 GMT


Thus far, on Tuesday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading lower, at 10061.36 at the time this report was written, after opening at 10094.12. The index has traded mostly lower, with the high at 10096.20 and the low at 10059.53.

--- Written by Christopher Vecchio, Currency Analyst at DailyFX.com

[Jason Rogers]

It is widely anticipated at the Federal Open Market Committee rate decision today that the Fed Funds rate will be kept unchanged between 0.00 and 0.25 percent. While the rate decision is due at 12:30 EDT / 16:30 GMT, the key parts of today’s Federal Reserve events come a few hours later, when the Fed releases its revised economic projections for the economy at 14:00 EDT / 18:00 GMT, just ahead of Chairman Ben Bernanke’s press conference at 14:15 EDT / 18:15 GMT. With US growth figures slowing alongside a weaker than expected labor market, market participants are widely expecting that some new form of accommodative policy will be introduced.

Certainly, in the inter-meeting period, rumors have floated that the Federal Reserve is considering another round of quantitative easing, but views have ranged as to what type of easing package it may be: an asset purchases targeting mortgage backed securities (ala QE1); an outright bond purchases (ala QE2); a further ‘twist’ of the Fed’s balance sheet (ala Operation Twist announced in September, concluding at the end of this month); or even a sterilized bond purchase program that involves the Fed using one- to four-week reverse repos (thereby avoiding increasing bank excess reserves).

While we believe that there will be some indication of easing, we do not believe it will be on the scale of QE2 – outright bond purchases intended to flatten the yield curve. Instead, we believe it will be an extension of Operation Twist. Currently, the Fed has just under $200 billion in short tenor securities left on its balance sheets, which means if the Fed were to continue Operation Twist at its current rate, the program would end in September. Accordingly, this will buy more time for the Fed to assess the economy and devise new ways to help promote growth.

In terms of what the market is expecting, calls have been high for a QE3 package, especially among the Fed’s more dovish members such as Charles Evans (who last week stated that he would support any form of more accommodation), but it’s important to note that the Fed voting bloc has been a bit more conservative lately (on the whole, most have suggested a “wait-and-see” approach).At his Congressional testimony a few weeks ago, Chairman Bernanke made it clear that the Fed would not fill the void created by the US’ irresponsible fiscal policy, and that the Fed could only do so much to achieve its dual mandate of price stability (with Core inflation near 2%) and maximum employment.

These expectations for QE3 have been strong since the dismal Nonfarm Payrolls report for May that was released on June 1.The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR), after peaking on June 1 at 10312.73, has shed as much as 2.78 percent, falling as low as 10026.23 yesterday, the index’s lowest reading since May 15. In the past five days alone, since rumors emerged that the G20 was considering a globally coordinated intervention to help calm markets should the Greek elections yield an unfavorable result, the Dollar Index has dropped by as much as 1.53 percent. It’s fairly evident that the threat of more easing, an ultimately fiat-dilutive measure, has hurt the US Dollar’s prospects.

How Will the Market React?

Similar to the Operation Twist announcement in September 2011, expectations are high for a major easing package, not just a program that extends the duration of the Fed’s balance sheet. As such, this could result in a letdown, resulting in the selling of high beta currencies and risk-correlated assets in favor of the US Dollar.

AUDUSD 5-min Chart: September 21, 2011

Charts Created using Marketscope – Prepared by Christopher Vecchio

As evident in the chart above, when Federal Reserve Chairman Bernanke announced that Operation Twist was coming, not a full-scale outright bond purchase program, the US Dollar gained traction quickly. The AUDUSD dropped from near 1.0230 ahead of the press conference to as low as 1.0055 by the end of the US cash equity session. Indeed, when expectations are riding high, there’s significant room for a surprise, and in this case, this could result in an explosive move higher by the US Dollar.

Key Pairs

QE3 ON: AUDUSD Bullish, EURUSD Bullish, USDJPY Bearish
QE3 OFF: AUDUSD Bearish, EURUSD Bearish, USDJPY Bullish

--- Written by Christopher Vecchio, Currency Analyst at DailyFX.com

[Jason Rogers]

Hi Everyone,

All eyes remain on Europe as a key summit will be held in Brussels on Thursday and Friday. Early trading this week shows that the markets are selling into the meeting as the Euro and stocks have fallen.

The euro fell broadly on Monday as concerns about stuttering global growth and low expectations of progress in tackling the debt crisis at a European summit later in the week weighed on demand for riskier currencies. - Reuters

World stocks fell Monday amid concern that a critical European summit later this week will not yield a deal that might restore confidence in the future of the 17-country euro currency. – AP

For contrarian traders, this could present an opportunity if the EU Summit goes better than expected. SSI for the Euro flipped from positive to negative last Friday, which means that more FXCM traders were short the Euro than long going into the weekend.



Joel Kruger, Technical Strategist at DailyFX.com has provided some key prices to watch this week:

EUR/USD: While our overall outlook remains grossly bearish, from here we still see room for short-term upside before a fresh lower top is sought out. Despite the latest pullback, the market still looks constructive in the short-term while above 1.2440. A closer look at the weekly chart still shows the pair putting in yet another weekly higher high and higher low. Nevertheless, a break back above 1.2750 will now be required to accelerate gains. Below 1.2440 negates. – Click here to read the complete technical analysis at DailyFX.com

Jason

[Jason Rogers]

Source: Der Spiegel

As hope wanes for progress to be made at the EU Summit on Thursday and Friday, further losses in the Euro are possible. Here is an excerpt from an article by David Song, Currency Analyst at DailyFX.com:

The Euro touched a low of 1.2458 on Wednesday as German Chancellor Angela Merkel continued to voice her opposition for a Euro bond, and the single currency may face additional headwinds over the remainder of the week should the EU Summit disappoint. Indeed, there are a lot of expectations surrounding the meeting in Brussels as the group pushes for further fiscal integration, but there’s little in the way of seeing a major development this week as the governments operating under the fixed-exchange rate system continue to move in their own interest.

Read the full article at DailyFX.com

[Jason Rogers]

The US dollar has gotten a boost from risk aversion trading. This trend could continue given current sentiment. Take a look at the table below of the latest readings of SSI (Speculative Sentiment Index).





Click here for the full article on today's SSI readings at DailyFX.com

[Jason Rogers]

The low expectations in place the past few days surrounding the Euro-zone Summit were tossed aside with ease on Friday, as new measures proposed prompted a massive short-covering rally in the Euro. The AUDUSD and EURUSD have had their two best days all year as a result.



Taking a step back from the charts for a second, we should take into consideration the parameters of the measures disclosed at the Summit in order to determine whether or not today’s near-2 percent move in the Australian Dollar and the Euro are going to be long-lasting, or whether or not we’re seeing some additional volatility due to the end of the month and the quarter.

There are four glaring holes in the Summit’s announcements. Click here to read the complete article at DailyFX.com

EURUSD: Small New Short Position Triggered

Prices appeared to complete an upward correction with a break of rising channel support on June 21 and have now rebounded to improve risk/reward parameters for re-entry. We will try a small new short position here, initially targeting 1.2442. A stop-loss will be activated on a daily close above 1.2746. Click here to read the complete strategy at DailyFX.com

[Jason Rogers]

US ISM manufacturing for the month of June was just released and the report came in at 49.7. The 50 number is very important since readings above 50 indicate manufacturing is growing and readings below 50 indicate manufacturing is contracting. This is the first contraction in US manufacturing according to the ISM data since July 2009. Here's a chart:

Source: US ISM since 1950

If you thought this week would be quiet due to the US holiday on Wednesday, think again. We have 3 central bank interest rate decisions and the US Non-Farm Payroll figures due to be released this week. Here's a summary of what you need to know about each written by Christopher Vecchio of DailyFX.com:

July 03 Tuesday // 04:30 GMT: AUD Reserve Bank of Australia Rate Decision
The RBA is expected to keep its key rate on hold at 3.50 percent on Tuesday, all while neutralizing its tone in its policy statement. While the RBA cut rates from 4.75 percent to 3.50 percent since November 2011, it’s clear that the Australian economy is taking on the rate cuts swimmingly: first quarter GDP was well-beyond expectations; the labor market, fueled by strong demand for commodities, continues to expand rapidly; and the housing sector isn’t looking as weak as it was at the beginning of the year. The Credit Suisse Overnight Index Swaps show that 82.0-bps are being priced out of the AUD over the next 12-months, and that there is only a 15.0 percent chance of a 25.0-bps rate cut at Tuesday’s meeting. The key pairs to watch are AUDJPY and AUDUSD.

July 05 Thursday // 11:00 GMT: GBP Bank of England Rate Decision
Expectations for the BoE to ease further are riding high, with the consensus survey provided by Bloomberg News showing that economists forecast that the Asset Purchase Program target will be raised to £375 billion from £325 billion. All the while, the key interest rate should remain unchanged at 0.50 percent, where it has been on hold since March 2009. Ahead of the Greek elections, the BoE alongside the UK Treasury announced plans for a major liquidity program to help credit flow to small businesses, and it is possible that some more of those plans are disclosed this week. Ultimately, we expect the BoE to cave and ease more, as there are few other viable options at this point in time. The key pairs to watch are GBPJPY and GBPUSD.

July 05 Thursday // 11:45 GMT: EUR European Central Bank Rate Decision
The Euro-zone Summit yielded the results that the ECB has longed to see: political leaders coming together to implement a plan that will stem the crisis. However, any help from the fiscal side of the growth equation looks to be limited, and the ECB is essentially having its hand forced to implement new measures to help control the spread of the crisis from the periphery into the core. With that said, we think that the ECB’s stance has been softening (or leaning towards easing), in the sense that the German economy is starting to experience some of the backlash from the crisis (slower growth, falling price pressures). This month’s ECB rate decision will reveal this: if the ECB cuts rates, it thus believes politicians have done enough to warrant further help from monetary officials; if the ECB does not change its policies, then it is a sign that the ECB believes more needs to be done by political leaders. A rate cut will be supportive of a stronger Euro – just like how the July 2011 rate hike was deconstructive. The key pairs to watch are EURGBP, EURJPY, and EURUSD.

07/06 Friday // 12:30 GMT: USD Change in Nonfarm Payrolls (JUN)
This is the most important event of the week. The US labor market has been expanding at a slower pace than most have anticipated in recent months, at an average rate of +101.3K from March through May after expanding at an average pace of +223.3K from December through February. Since December, though, the Unemployment Rate has fallen from 8.5 percent to as low as 8.1 percent in April, before bouncing up to 8.2 percent in May. Questions remain over how much the unseasonably warm winter has had on the employment picture, and by now, any of these backlashes should have run its course. According to a Bloomberg News survey, jobs growth should come in at a mere +90K, above to +69K from May. Similarly, the immaterial figure will leave the Unemployment Rate unchanged at 8.2 percent in June. A stronger figure will be supportive of a stronger US Dollar while a weak figure will inevitably stoke the QE3 fire. The key pairs to watch are EURUSD and USDJPY.

Source: Bank of England, European Central Bank to Meet; US NFPs on Friday | DailyFX

[Jason Rogers]

Tomorrow is the first Friday of the month which means that NFP is being released, and the forecast average says 90,000 jobs were created during the month of June. 90k isn't all that impressive, but the ADP release out today showing the private sector added 176k jobs and the drop in jobless claims to 374k is causing some optimism. So much so that Goldman has raised their forecast from 75k to 125k according to a blog post by ZeroHedge. Below is a graph showing NFP job creation/loss over time. The recent increases have been lackluster compared to the size of the losses during the recession.

So how are traders setting up going into tomorrow's NFP release? EUR/USD positioning is now net long by the largest amount since the pair dropped below 1.25.

The weekly SSI report was released today and David Rodriguez is looking for the euro to target lows of $1.2290 and $1.1875 due to the contrarian signal from SSI. You can see the complete SSI update here: Euro Targets $1.1875 as Retail Crowds buy Post ECB Rate Cut | DailyFX