For those of you who follow my analysis on a regular basis, I've mentioned monthes ago that ECB was planning a QE and that the aim was to devaluate EUR against USD in order to favor the importation of inflation and the export as well. On a pure chartist approach, you do have here the resistence and support level of EURUSD pair. The primary target remain 1 and the next target remain 0,925. We will then see if this level is enough, and if it has an impact on ECB's policy. If not, then we may go further down towards 0,88 and 0,86. This depends on the commodity prices, as well as on the inflation based on production prices. Of course, if FED decide to increase its interest rate, even by 0,50 base point, this would have a tremendous impact on the pair, baring in mind that EUR is on a negative territory in terms of interest rate.
Comments
ElPatron.Y
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Don't you think we will see a small correction first, before the breakout down? RSI shows oversold long time ago..
ElPatron.Y
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I think a 1.1200 is very possible before going downwards further.