capitalpropertiesfx

EURUSD sold off - what next?

FX:EURUSD   Euro Fx/U.S. Dollar
331 4 4
The drop in EURUSD             was definitely frightening for euro             bulls and it seemed that the bears have taken control and we are done with the upside. However, things are not always as they first appear, especially with this pair. First of all, euro             travelled from 1.20 all the way to 1.3993 and did not break 1.40. C'mon - it's like driving 3000miles from NYC to Los Angeles only to turn around 100miles before reacing your destination. Very unlikely!

From tehcnical perpective, the drop from 1.3993 is too steep not to be retraced @ least 50%. Look @ the Daily chart and see for yourself. All the agressive drops have been retraced since we started this ride from 1.20.

All in all - I remain bullish until proven wrong and I will not rest until 1.40 is reached. And it will be reached.
99nines
2 years ago
Well said :)
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claydoctor
2 years ago
Normally yes, but the new normal has to take into account the FED or in this case the ECB, who HAS TO stimulate, therein, lowering the strength of the Euro v the dollar. It like driving a car, and not focusing on the next car ahead but the one 3 cars ahead. Just saying. :)
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capitalpropertiesfx claydoctor
2 years ago
ECB's actions of course will affect euro but it might be short lived, if you remember the rate cut in EuroZone, back in 2013 November. When they decided to cut rates, EURUSD was trading above 1.35 (after a strong sell off from 1.38) and when the announcement came in, eurusd dropped like a rock to 1.3295. And what happened after that ? We never looked back and last week we were very close to 1.40.
So, what I am trying to say is that the market will decide in the end, where ones value should be. Supply and Demand.
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PatStale capitalpropertiesfx
2 years ago
like the swiss central bank .... holding the 1.1990/ level since 2012?
I tend to err on the side of caution as claydoc does...
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