EURUSD --Just a dead CAT bounce or a Long-term Reversal
Technically EURUSD is in a Long-Term Bear Trend. The bounce looks to me to be a dead cat bounce due to
1. Oversold EURUSD and also Weakness of Dollar due a miss in ISM manufacturing number 49.1
The Eurozone numbers indicate an overall weakness with EUROZONE economies compared to US. With the World economies growth slowing, Most bond yields in Negative and US economy being the stable & strongest among them. The Dollar will act as the safe haven and therefore Sovereigns , Central banks and Hedge Funds will keep buying the Dollar in the near-term.
Purely from a technical and fundamental view, i think we sell the EURUSD to test the bottom 1.0926 and then see if it holds. if it does HOLD then that validates the bottom and we can then begin the actual recovery . NOTE: The Direction of EURUSD at the moment depends on ECB, EU & BREXIT GeoPolitics plus the US FED
1. Oversold EURUSD and also Weakness of Dollar due a miss in ISM manufacturing number 49.1
The Eurozone numbers indicate an overall weakness with EUROZONE economies compared to US. With the World economies growth slowing, Most bond yields in Negative and US economy being the stable & strongest among them. The Dollar will act as the safe haven and therefore Sovereigns , Central banks and Hedge Funds will keep buying the Dollar in the near-term.
Purely from a technical and fundamental view, i think we sell the EURUSD to test the bottom 1.0926 and then see if it holds. if it does HOLD then that validates the bottom and we can then begin the actual recovery . NOTE: The Direction of EURUSD at the moment depends on ECB, EU & BREXIT GeoPolitics plus the US FED
Comment:
German Factory Orders fell by 5.6% y/y in July, EUR/USD hits fresh lows
Comment:
From FXStreet by Dhwani Mehta
German Factory Orders fell 2.7% m/m in July.
German Factory Orders plunged 5.6% y/y in July.
The German Factory Orders fell sharply in July, suggesting that the manufacturing recession in Europe’s largest economy is picking up pace.
Contracts for goods ‘Made in Germany’ arrived at -2.7% on the month vs. +2.5% last, the latest data published by the Federal Statistics Office showed on Thursday.
On an annualized basis, Germany’s Industrial Orders fell 5.6% vs. -1.1% expectations and -3.6% last.
The shared currency came under fresh selling pressure on poor German factory orders data, sending the EUR/USD pair closer towards the 1.10 handle.
German Factory Orders fell 2.7% m/m in July.
German Factory Orders plunged 5.6% y/y in July.
The German Factory Orders fell sharply in July, suggesting that the manufacturing recession in Europe’s largest economy is picking up pace.
Contracts for goods ‘Made in Germany’ arrived at -2.7% on the month vs. +2.5% last, the latest data published by the Federal Statistics Office showed on Thursday.
On an annualized basis, Germany’s Industrial Orders fell 5.6% vs. -1.1% expectations and -3.6% last.
The shared currency came under fresh selling pressure on poor German factory orders data, sending the EUR/USD pair closer towards the 1.10 handle.