Is it time to buy the $EUR & Why?
As we head closer to ECB - If they are Hawkish and expected to raise rates even further, expect EUR to turn further bullish. We are at a key resistance area, now remember it isn't just ECB we focus on when it comes to EUR. Take into consideration the FOMC - Source - WSJ: Federal Reserve officials are barrelling toward another interest-rate rise of 0.75 percentage point at their meeting Nov. 1-2 and are likely to debate then whether and how to signal plans to approve a smaller increase in December.
Now, yes we understand the further they hike the stronger DXY and that leads to the majors declining. However, we may have currency war at our hands we have had BOJ - intervene, even though they don't 'state' it, we've had various other countries concerned when it comes to FOMC further hikes but as they MAY slow down 75 basis points to 25 perhaps, this is easing the pressure on DXY leading the other currencies at very key areas! If we get hawkish ECB combined with this, expect euro to go back to previous levels of: 1.0500 - 1.03600.
Technically: If we stay above these levels and go above 1.0000 handle over I do expect 1.03 to come into play. However, if we drift below 0.98500- 0.97500 then we back within range.
Lastly, don't forget to trade your own trade plan!
All the best,
Trade Journal
As we head closer to ECB - If they are Hawkish and expected to raise rates even further, expect EUR to turn further bullish. We are at a key resistance area, now remember it isn't just ECB we focus on when it comes to EUR. Take into consideration the FOMC - Source - WSJ: Federal Reserve officials are barrelling toward another interest-rate rise of 0.75 percentage point at their meeting Nov. 1-2 and are likely to debate then whether and how to signal plans to approve a smaller increase in December.
Now, yes we understand the further they hike the stronger DXY and that leads to the majors declining. However, we may have currency war at our hands we have had BOJ - intervene, even though they don't 'state' it, we've had various other countries concerned when it comes to FOMC further hikes but as they MAY slow down 75 basis points to 25 perhaps, this is easing the pressure on DXY leading the other currencies at very key areas! If we get hawkish ECB combined with this, expect euro to go back to previous levels of: 1.0500 - 1.03600.
Technically: If we stay above these levels and go above 1.0000 handle over I do expect 1.03 to come into play. However, if we drift below 0.98500- 0.97500 then we back within range.
Lastly, don't forget to trade your own trade plan!
All the best,
Trade Journal
Comment:
EUR heads higher due to Mid terms as well as CPI - Next stop 1.02/1.03 Perhaps little pull back is due.