Is There Major Buying In The EUR/USD Around The 1.30 Area?
By Ralph Shell: It seems when the euro approaches the 1.30 area, there is underlying support and the euro then rallies. Since the forex market, in total, lacks visibility we simply do not know what orders are lying in the weeds, undetected by the many market participants.Recently there have been rumors of Chinese buying around the 1.30 area, and is given as a reason why the market is skittish when approaching that level. There are several suggested reasons for the Chinese buying interest. One theory is Europeans as the largest buyers of Chinese goods, may be bigger buyers if the euro is strong. Another theory for the Chinese support of the euro, is the Chinese wish to divest a portion of their reserves away from the USD.Personally neither of these theories makes much sense to me, but if you are sitting at a poker table with the largest pile of chips,Complete Story »