EURUSD Huge sell off today after ECB news slashing projected growth forecasts from 1.7% to 1.1% for 2019. Fundamentally Europe is struggling as an economy with Italy in a technical recession and the remainder of Europe struggling due to China slowing down and the Euro countries being reliant on trade. This all suggests near term growth to be weaker than originally anticipated. The central bank is offering new loans to banks, to help stimulate the economy by boosting spending.
I believe the Euro will struggle temporarily before seeing better numbers towards the end of the year once China has repaired it's relationship with USA and Brexit is done and dusted.
Technically, we have now made a new low. As traders we anticipated this due to the 61.8% of the recent swing high and swing low being tested, with a rising wedge and even psychological number of 1.14 being met and a third touch of a descending TL. From here I believe we will see a correction to at least 1.1300-13500. Generally when using the Fib tool, I look to target -127% as a target. Looking back on previous moves, we have not met this level as a target on the recent swings, therefore I believe we will see a correction at these levels.
This idea would be invalidated on a break below this channel, and shorts executed upon a retest.
I believe the Euro will struggle temporarily before seeing better numbers towards the end of the year once China has repaired it's relationship with USA and Brexit is done and dusted.
Technically, we have now made a new low. As traders we anticipated this due to the 61.8% of the recent swing high and swing low being tested, with a rising wedge and even psychological number of 1.14 being met and a third touch of a descending TL. From here I believe we will see a correction to at least 1.1300-13500. Generally when using the Fib tool, I look to target -127% as a target. Looking back on previous moves, we have not met this level as a target on the recent swings, therefore I believe we will see a correction at these levels.
This idea would be invalidated on a break below this channel, and shorts executed upon a retest.