Euro Futures Volatility Forecast (01/02/2011)

The last week we were expecting an up movement of the price but our forecasts have been confirmed until Friday when the price dropped considerably.

The sharp plunge in price is evident since the volatility curve, which was downward sloping, rallied to 0.84% (13.3% annualised) which is the highest volatility  level ever touched by this market over the last 5 months.

However, the plot seems to suggest that market fluctuations could rise even further over the next trading days dragging the price towards the 1.34 – 1.35 zone.

The staff of HyperVolatility is bearish on Euro futures, at least for this week, and advises you to look for short opportunities or alternatively to close out your longs.

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