why EUR/USD sticks with 1.09 so long?
- Thread starter noblehawk
- Start date
My personal opinion is that the stretch of the euro to 114 was driven by the European bond route in response to "the end of European deflation". This freaky crash is done.
Coincidentally? , this set the table for the ECB in terms of creatiing more qualified supply of higher yielding debt for the ongoing ECB QE program. The ECB has jumped on this with an annoucement of an accelerated pre-holiday buying spree. European yields and the euro still
+ correlated have moved down together and are both pausing now.
Seems previois value levels or S/R , 109ish, have been negotiated amd more data is needed going forward.
Coincidentally? , this set the table for the ECB in terms of creatiing more qualified supply of higher yielding debt for the ongoing ECB QE program. The ECB has jumped on this with an annoucement of an accelerated pre-holiday buying spree. European yields and the euro still
+ correlated have moved down together and are both pausing now.
Seems previois value levels or S/R , 109ish, have been negotiated amd more data is needed going forward.
The trend is likely to be slower for the remainder of the year. We should not expect anything beyond 1.08 to 1.10. 1.05 is still a possibility. Gone are the days where we see sharp ratios/movement in the EUR.
EUR/USD outlook largely depends on the price action in EUR/GBP. The pair has attracted sellers around 1.11 level previously. Although the price action suggests further downside ahead, exhaustion is seen in selling. GBP/USD is expected to head lower, and hence some upside towards 1.10 or consolidation at current levels might be seen in EUR/USD. Failing to hold the support zone might lead to a move lower towards 1.05.