A great EURUSD picture is worth hundred pips
This week EURUSD has been on a roller coster after ECB Interest rate cut and QE start
Shot up to 1.0967 then Dropped to touch the 1.0926 Lows and then spiked up to 1.0979 before finishing it off at above 1.1110.
Now that the Speculators have baked their cake and eaten it too after ECB Dance , Have the EURO Zone Fundamentals changed ? Answer is NO, infact things are getting worse . That is the question that the Big Boys( Hedge Funds, Banks, Sovereigns) are asking .
In my own Opinion , i think we fade the current EURUSD rally ( which is currently topped at 1.1110 ) with a SELL towards testing and validating the multi-year low at 1.0926
Expected Trade: SELL
Entry Range: 1.1110 to 1.1070
Exit Range : 1.0960 to 1.0926
Probability of success: High if EURUSD fails to hold 1.1100 handle at the close of this week
Shot up to 1.0967 then Dropped to touch the 1.0926 Lows and then spiked up to 1.0979 before finishing it off at above 1.1110.
Now that the Speculators have baked their cake and eaten it too after ECB Dance , Have the EURO Zone Fundamentals changed ? Answer is NO, infact things are getting worse . That is the question that the Big Boys( Hedge Funds, Banks, Sovereigns) are asking .
In my own Opinion , i think we fade the current EURUSD rally ( which is currently topped at 1.1110 ) with a SELL towards testing and validating the multi-year low at 1.0926
Expected Trade: SELL
Entry Range: 1.1110 to 1.1070
Exit Range : 1.0960 to 1.0926
Probability of success: High if EURUSD fails to hold 1.1100 handle at the close of this week
Comment:
If Technical Analysis are to be believed then we need to breakout of the Descending Long-term Wedge or triangle pattern. EURUSD volatility is high and that tends to mask a clear price trend or range.
NOTE: i tend to avoid indicators and technical analysis instead i prefer Machine Learning using Deep Reinforcement Learning and just the Data itself. All information you need is in the Price Data and Alternative Data . Let the Super Computers do the work for you and stop trying to guess
NOTE: i tend to avoid indicators and technical analysis instead i prefer Machine Learning using Deep Reinforcement Learning and just the Data itself. All information you need is in the Price Data and Alternative Data . Let the Super Computers do the work for you and stop trying to guess
Technical outlook
For the first time since April, EUR/USD is about to post two consecutive weekly gains. Still the long term chart points to the downside, but over the short-term the US Dollar could have lost momentum particularly after rebounding again from the 1.0925 area.
“The pair has bottomed twice at 1.0926 this September, but a double bottom figure is still unclear”, notes Valeria Bednarik, Chief Analyst at FXStreet. According to her the spike above the neckline was unsustainable, therefore diminishing the relevance of the figure. “As it happened last week, the 1.1000 level is the immediate support, and below it, the next relevant one is the two-year low at 1.0926, followed by the 1.0820/40 price zone.”