So as most of you already know it is March The 10Th Which is the date where The ECB come out and speak about Monetary easing, Inflation and Rate cut
What am i expecting ? Well as a mainly technical trader it is in my job description as a full time trader to look at Both technical and fundamental in the market.
After heavy research into the Fundamental side of things i Believe They will launch a round of Monetary easing or Deploy a Rate cut Why do i think this ?
Well Firstly We all have to look at the bigger picture how is the economy doing ? Not so good Top two economies are declining (US and Chinese) In regards to the EUROZONE it is looking even worse especially as many of the countries in the EU need bailouts and are suffering from current economic situations E.G. Greece Italy Ireland All of which are in the euro and are in great trouble
Anyways many Investors predict a huge sell of for the Euro as many believe they may be willing to bring out the big News and expand its aggressive quantitative-easing program, introduce a two-tiered deposit system and offer cheap loans to banks. If so then expect a huge decline in the Euros currency as There is a huge imbalance in the Euro at the moment
The question why are the ECB doing this well they are taking any drastic measurer to boost eurozone economy and like the ECB boss, Mario Draghi who said the central bank was “ready to do its part” to boost growth and inflation. Fading growth and inflation prospects will force the European Central Bank to review its policy stance And make a change to hellp its growth which of course is its main problem
inflation prospects have turned for the worse, raising a credibility issue for a bank that has undershot inflation for three straight years. Which is a big worry
So when you put all these factors in based of Fundamentals what does it mean well really nothing until draghi comes out and says it himself and launches Monetary easing or Rate cut's But if they do decide to go ahead with it expect a huge sell of :) For all EURO pairs
What do i See based on Technicals ?
Well a good thing that supports the sell of is we are below a key level of 1.1000 which is also a nice round number physiological Levels ;) Also after the big rally In February we have almost completely corrected ourself which many traders didn't believe would happen as many thought we would break the consolidation zone we have been stuck in after such a nice bullish move But once again with the EUR/USD price is undecided
We seem to be bounce of our key level which also helps in a bias to the downside Anyways This is my view on the EurUsd trade safe guys News is very unpredictable expect the worse and i hope i didnt bore you to much lol Thanks for reading happy trading lets make some pips !
Comment
⋅
Knowledge pays Made 1200 Pips in A day Thank you Draghi :)
Trade closed: target reached
⋅
Made a nice gain of 250 pips on EUR/USD made 1200 Across all the other EUR Pairs
Being Irish, I have to disagree with your inclusion of Ireland with Italy and Greece as "in great trouble". Growth in Ireland has been phenomenal for the last couple years. It is the fastest growing economy in the EU at the moment.
Otherwise, good analysis though....
ARFXC
⋅
I apologise i was ment to put Portugal i dont know why i put ireland my mistake
Thanks for the correction i appreciate it
zlmknt
⋅
you were right euro dropping
UnknownUnicorn380940
⋅
you wrote people to wait huge sell off here and it reversed...how did you make the profit?
ARFXC
⋅
did you not see that huge wick ? anyone in there right mind would close once your in 250+ pips with a news trade if you would like proof of 1200 pips profit ill be more then happily show you :)
UnknownUnicorn380940
⋅
im also in profit and rather wanna see my sheet:) but I did kinda accidentally..I guess same happened to you.. i saw many times a huge wick, then consequent wicks repeating same price action..
chartwatchers
⋅
They have played out almost everybody....
I knew this is going to happen...
ARFXC
⋅
I made my profit so im just watching with my popcorn :)
Otherwise, good analysis though....