EUR/GBP - end of rally ? - sell on 1D
market price reached today strong resistance down trend line, expect first big sellers coming into the market now. Currently market tests again trend line which is now small support before real down correction starts.
-RSI retraced several times from heavy overbought area which is bearish indicator
-MACD baselines going to cross bearish soon which brings sellers into the market
Fundamental view:
ECB President Mario Draghi has brought further interest rate cuts and bond purchases into play in light of low inflation in the Euro-Zone. Investors reacted immediately.
The European Central Bank (ECB) has set a target of two percent for inflation in the euro zone. In May the inflation rose by only 1. 2 percent after 1. 7 percent in April. Now ECB President Mario Draghi has promised an even looser monetary policy.
If there is no improvement, an additional monetary stimulus will be needed, Draghi said Tuesday at the ECB's central bank forum in Sintra, Portugal: "In the coming weeks the Governing Council will consider how our instruments can be adjusted according to the size of the risk to price stability"
There was considerable scope for further bond purchases. In addition, further interest rate cuts and measures to curb undesirable side-effects of the ongoing ultra-loosen monetary policy were among the tools. Indicators for the coming quarters indicated that the economy was still weak.
"We will use all the flexibility within our mandate to fulfil our mandate,"; Draghi said. In addition to the inflation trend, the ECB is concerned about the economic uncertainty caused by the US trade conflicts and the Brexit hanging game.
-RSI retraced several times from heavy overbought area which is bearish indicator
-MACD baselines going to cross bearish soon which brings sellers into the market
Fundamental view:
ECB President Mario Draghi has brought further interest rate cuts and bond purchases into play in light of low inflation in the Euro-Zone. Investors reacted immediately.
The European Central Bank (ECB) has set a target of two percent for inflation in the euro zone. In May the inflation rose by only 1. 2 percent after 1. 7 percent in April. Now ECB President Mario Draghi has promised an even looser monetary policy.
If there is no improvement, an additional monetary stimulus will be needed, Draghi said Tuesday at the ECB's central bank forum in Sintra, Portugal: "In the coming weeks the Governing Council will consider how our instruments can be adjusted according to the size of the risk to price stability"
There was considerable scope for further bond purchases. In addition, further interest rate cuts and measures to curb undesirable side-effects of the ongoing ultra-loosen monetary policy were among the tools. Indicators for the coming quarters indicated that the economy was still weak.
"We will use all the flexibility within our mandate to fulfil our mandate,"; Draghi said. In addition to the inflation trend, the ECB is concerned about the economic uncertainty caused by the US trade conflicts and the Brexit hanging game.
Trade closed: stop reached
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
