On the technical side support has held between 1.1177 - 1.1156 and now we are seeing speculators targeting the ABC sequence from March 20th. A retrace here can flow as high as 1.14555.
For those tracking oscillators you will know they are all extremely stretched and this is becoming a sensible place to start tracking for a base formation. Remember that previous breaks lower have all failed to hold for longer than one day. Even if we break lower it is becoming very late in the move to start chasing for the follow through towards 1.1048.
On the fundamentals markets are looking for more details on a tiered system which I am not expecting to come till later in the year. Growth and inflation is all down so little for the hawks to celebrate today so to put simply this is a very technical move with an inline expectations ECB to the top of the range.
Best of luck
For those tracking oscillators you will know they are all extremely stretched and this is becoming a sensible place to start tracking for a base formation. Remember that previous breaks lower have all failed to hold for longer than one day. Even if we break lower it is becoming very late in the move to start chasing for the follow through towards 1.1048.
On the fundamentals markets are looking for more details on a tiered system which I am not expecting to come till later in the year. Growth and inflation is all down so little for the hawks to celebrate today so to put simply this is a very technical move with an inline expectations ECB to the top of the range.
Best of luck
Comment:
A slip of the tongue from Draghi has capped the upside ... looks over for Euro bulls for the coming sessions. Smells like a huge move to the downside coming.
Comment:
"Two false breaks means we now need to be careful of any signs of a base forming as market approaches the 1.117/1.115 support"
We have the base forming here...
We have the base forming here...
