With the ECB pumping €20 Billion a month into the European economy, the value of the Euro by default will decline due to a massive supply increase. This move lower was a bit steeper than expected, and so we’ve made slight adjustments to our analysis and outlook.
We saw it push down -77pips to close the week on the easing news. It’s an impulsive move below the sub 1.0910 region hints at more weakness in the Euro before climbing over the US Dollar. If Friday’s slightly bullish closes, and follows with another positive day, we can see some market sentiment change to the upside finishing the second leg of our outlook. We are looking for a price pop to 1.075, correction, and then move to 1.12. However, this is all dependent on if the bottom of the Weekly Falling Wedge pattern holds or not.
THE PLAY: We are neutral on the Euro (similar to the DAX 30) until we see a close above 1.1020 - 1.1025 regions.
We saw it push down -77pips to close the week on the easing news. It’s an impulsive move below the sub 1.0910 region hints at more weakness in the Euro before climbing over the US Dollar. If Friday’s slightly bullish closes, and follows with another positive day, we can see some market sentiment change to the upside finishing the second leg of our outlook. We are looking for a price pop to 1.075, correction, and then move to 1.12. However, this is all dependent on if the bottom of the Weekly Falling Wedge pattern holds or not.
THE PLAY: We are neutral on the Euro (similar to the DAX 30) until we see a close above 1.1020 - 1.1025 regions.