Technician
Short

Yield Spike. An Opportunity to short the EURO?

FX:EURUSD   Euro Fx/U.S. Dollar
2154 9 35
Update: Excuse me for the broken chart, here is the correct support level
snapshot
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The spike in yields in my view has been over stretched, and could turn around very soon. The markets may be over-reacting to the idea of euro             area exiting deflationary environment and more optimistic about inflation going back higher as economy grows. However as the ECB continues to conduct its QE program, yields will probably hold near current levels and retreat back lower with time.. This might be a great opportunity to long the pullback in European equities and short the EURUSD             and EURGBP             .

Good luck
Exclusively Subscribers to my mailing list will get one month access to my trading account . Subscribe here http://thefxchannel.com/ ,
My best regards
Technician


Latest trading ideas: https://www.youtube.com/channel/UC02s7uiUQl55HkhHZDM6eUw/videos

Free Telegram Channel: https://t.me/technician_forex_trades

Trading Signals Redefined: https://thefxchannel.com
correct me if im wrong but the euros recent rally is due more to the fact that the dollar has been weaker?
Reply
Yep true, but since the rise in bund yields, euro has been outperforming most currecnies and therefore as yields retreat it will probably be the most vulnerable. (Given the assumptions that yields will backoff)
snapshot


Note that the black line is the Bunds bonds chart(which is the inverse of yield)
-1 Reply
correct
only my idea
Reply
Double top now ..I think now Its a good oppertunity to open the trade ..
Reply
I am aiming for the 1.15 area to short the Euro once again. Economic data from the US keeps disappointing.
Reply
Probably have to consider US economic data as well for direction of EURUSD.
Reply
Yep, generally what matters more now is the federal reserve outlook for interest rates..
-1 Reply
I do agree, great R:R shorting EUR currently. Works well with other pairs also, great analysis as always Tech!
Reply
Thanks mate
-1 Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out