EURUSD : The Grand Trine exit : Approaching Euro black weeks
Dear fellow traders !
Eurozone shows some weaknesses to keep a strong Euro. As we already know European politicians seem a bit confused about a way to fight unemployment and inflation rates at the same time. But a decreasing euro price could leads to a nice increase of external demand to European goods and stimulate exportation.
Moreover the international syndicate of central banks, the BIS located in Switzerland, warns us about an overvalued and "euphoric" state of stock markets which could lead to a strong sell on stocks. If we look at the past, we can see that 2008 sub-prime crisis produced, 1. a big stock markets collapse, 2. a strong demand on US dollar. In fact, it seems that stock markets decline involve more demand on US Dollar than Euro. But this year investors could see cryptocurrencies or even commodities as safer investments than classical currencies. Furthermore, ECB interest rate is already at is lowest level and creditless EU seems unable to bail out euro and european stock markets.
Now, on technical analysis, we can see that euro is progressively exiting a strong bullish wedge which could lead to an important lack of confidence to invest in euro. The legitimate Janus pattern developed by our 4xForecaster fellow trader is showing more and more confirmation and a break of 1.3474 level could lead to a strong sell on Euro.
Finally, the positive divergence rejection on the Euro and MACD lowest rates makes me conclude that we could get a profitable fall during next months.
I've written 3 take profit levels where we can see good bounces before new selling signs of reversal.
I wish you the best for your trades.
Best Regards,
Serge Bonaparte
Eurozone shows some weaknesses to keep a strong Euro. As we already know European politicians seem a bit confused about a way to fight unemployment and inflation rates at the same time. But a decreasing euro price could leads to a nice increase of external demand to European goods and stimulate exportation.
Moreover the international syndicate of central banks, the BIS located in Switzerland, warns us about an overvalued and "euphoric" state of stock markets which could lead to a strong sell on stocks. If we look at the past, we can see that 2008 sub-prime crisis produced, 1. a big stock markets collapse, 2. a strong demand on US dollar. In fact, it seems that stock markets decline involve more demand on US Dollar than Euro. But this year investors could see cryptocurrencies or even commodities as safer investments than classical currencies. Furthermore, ECB interest rate is already at is lowest level and creditless EU seems unable to bail out euro and european stock markets.
Now, on technical analysis, we can see that euro is progressively exiting a strong bullish wedge which could lead to an important lack of confidence to invest in euro. The legitimate Janus pattern developed by our 4xForecaster fellow trader is showing more and more confirmation and a break of 1.3474 level could lead to a strong sell on Euro.
Finally, the positive divergence rejection on the Euro and MACD lowest rates makes me conclude that we could get a profitable fall during next months.
I've written 3 take profit levels where we can see good bounces before new selling signs of reversal.
I wish you the best for your trades.
Best Regards,
Serge Bonaparte
