Deja vu all over again. Looks like Goldman is about to be stopped out once more on its most recent EURUSD call. Recall:
We have seen a rush of stops triggered with the push under 1.3400 and the price action would suggest that some more strikes came into play at 1.3350 . The better European data activity has again been swamped by renewed fears for the European periphery , with Fitch's downgrade of Portugal particularly weighing on sentiment . The probable close today below 1.3430 should herald a fresh leg of weakness following 7 weeks of 1.3430/1.3840 action . Whilst positioning was light 24 hours ago we have seen it build sharply in the past few hours but this does not feel like a crowded trade . We are playing this from the short side and would look upon a rally back to 1.3420 as a selling opportunity. Stop can be placed above 1.3500 . Its hard to know how far this move can extend but a target of 1.3100 mentioned by John Noyce does not seem unreasonable.
The Euro is now over the 1.35 stop limit. And so Goldman makes a boatload yet again as clients lose. Keep an eye on the official close. We wonder if this means third time will be the charm for GS which should next go EUR bullish (once again, and less than a month after the first failed such call).