Is Draghi going to rescue the EUR? ECB Pre-Analysis 7/8/14

FX:EURUSD   Euro Fx/U.S. Dollar
We saw that the uptrend from the end of 2013             got destroyed just by one sentence:

"We are going to manage the strenght of the Euro             against the Dollar in June."

The market got in a really overextended selling rally. Additional to that "market panic" positive US ecenomy values got released and Ukraine crisis destroyed stocks and indices of the european countries. This summary of negative influence on the EUR pushed the EUR/USD             to a new yearly low.

But a big part of this rally was just a psychological reaction of the market participants after the statment of Mario Draghi.

This baseless loss of value is a kind of movement which gets a correction shortly after its happening. But the fundamental status prevented this "correction" after the loss of ca             .300 points from 1.3993 towards 1.37 the market never experienced the correction of this 300 point rally.

Therefore I expect a correctional movement towards FIB 50% or towards the MA 200 just for the cause of giving the EUR/USD             its fair price.

The point is which 50 % fib ? 1,3660 of the all move down or 1,3520 (50% of last swing high ?
Reply Dimitris
1.3520 as a target and 1.3660 as an extension.
Yes that's logical. Thanks a lot. I just hope it doesn't hit my S/L @ 1,3320 since I am already long.
Reply Dimitris
Consider that we have a strong resistance at 1.330. If your margin is enough stay at least to 1.329 if it retests.
i agree!
+1 Reply
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