Euro Jedi Counterattack Dollar Red Flag Landing

The European Central Bank announced yesterday that it lowered the target refinancing rate by 10 basis points to 0.15%, and lowered the deposit interest rate to -0.1%. Later, the European central bank governor Delaki told a news conference that the central bank had already begun to implement QE.

Delaki also announced that the European Central Bank will implement a series of long-term operations, including the new round of LTRO (long-term refinancing operation) and the implementation of ABS (asset backed securities) purchase.

New round LTRO The planned size is 400 billion euros, and the plan expires in 2018. Banks can lend 7% of total loans to the euro area, and public sector loans will not be included. Delaki may reiterate his commitment in the forward-looking guidelines to keep borrowing costs at present or lower levels for some time. This means that the central bank may further lower interest rates.

The central bank even put forward its own European version of the QE policy, which sharply suppressed the euro, but then triggered a profit from the recent decline in the market, and the euro / dollar went up sharply after a sharp decline.

From a technical point of view, the US dollar index fell sharply after the 81 integer barrier was blocked, and it continued to fall below the support of the 5 and 10 day moving average. It also closed at the top 80.60, which means that the rise of the US dollar has come to an end for a while. Now it enters the callback consolidation stage, and the support of the short term 20 day moving average will be tested.

Today dollar Initial support in 80.20 - 80.25, stronger support in 80.10 - 80.15. Today, the resistance of the US dollar index is between 80.50 and 80.55, and the short-term resistance is between 80.65 and 80.70. As long as the US dollar callback does not fall below 80, the pattern of the US dollar's medium-term rise will not be destroyed.

　　 US dollar index Only when we stand on top of 81 will the space for us dollar rise be opened. Today, 20.30 minutes in the evening, the impact of non-agricultural data on the market in the United States in May should not be underestimated. Our operators must make good risk management when formulating the operation plan, which is an important guarantee for us to survive in this market.

The US dollar is dominated by short selling on the short term today. It breaks the position to stop losses. If there are more than 30 profit points, we will set a good stop to win. Before the opening of the United States, we will withdraw all the outstanding transactions. This strategy is suitable for margin and can be taken as a reference.

The US dollar index can be sold at the upper limit of the 80.55----80.15 interval, effectively breaking 25 point stops, and the target is at the lower limit of the interval.

Euro / US dollar: it can buy at the lower limit of the 1.3715----1.3615 interval, effectively break 40 points and stop the loss, and the target is in the upper limit of the interval.

GBP / USD: it can be bought at the lower limit of the 1.6850----1.6760 interval, effectively breaking the 40 point stop loss, and the target is at the upper limit of the interval.

USD / CHF: it can be sold at the upper limit of the 0.8960----0.8870 interval, effectively breaking 40 point stops, and the target is at the lower limit of the interval.

USD / yen: it can be sold at the upper limit of the 102.70----102.10 interval, effectively breaking 30 point stops, and the target is at the lower limit of the interval.

Australian dollar / US dollar: it can buy at the lower limit of the 0.9370----0.9280 interval, effectively break 40 points and stop the loss, and the target is in the upper limit of the interval.

USD / Canadian Dollar: it can be sold at the upper limit of the 1.0960----1.0890 interval, effectively breaking 30 point stops, and the target is at the lower limit of the interval.

Gold: it can buy at the lower limit of 1260 - 1246, and effectively break $6.

Silver: it can buy at the lower limit of 19.20 - 18.80, and effectively break the position of 0.20 US dollars, and the target is in the upper limit of the interval.

The above strategy is calculated by my intelligent trading system, and investors are asked to adjust accordingly according to the specific market.