Just like our EurUsd Idea, EurJpy may remain under pressure due to the political issues in Europe, alongside the already evident risk-off sentiment seen in Asia trade.
A combination of political issues in Italy & Spain could keep the lid on the Euro & it's crosses. Keep in mind yesterday's action was dominated by low-liquidity with UK & US away. Should be interesting.
As EU traders come back to their desks today it will be interesting to see what happens to the Euro. We bounced the first support zone 1700/20 yesterday and 1.1800 has acted as resistance. We need more information before making any further decisions. There is also the feeling that Italian political concerns are overdone. This all feels a bit premature - patience...
The 5 star movement is emerging as the largest party from the Italian election. The party’s direction is anti-establishment and anti-EU, which could spell further trouble for the EUR/USD. Looking for resistance of 1.2350 hold, with the downward move a higher probability.
Seems like there is a general market turnaround. Along with this ECB is slowing down the bond buying and Italy has an upcoming election which could be won by the 5 star movement. Tecnically it looks like it is about to turn and in a resistance area
UniCredit SpA and Intesa Sanpaolo SpA could face combined losses of almost 20 million euros from the failure of Innowatio.
Relative Pair Trading Spain better positioned for eoy vs Italy In Relative Terms spain imho will do better than Italy at least till 0.88 ratio.
Target 21.200 october/novemeber Ultraoverbought short term.
I think we can get a retracement in the financial sector, and Europe is in worse shape than the US in general. It wouldn't surprise me to have some negative news pop out, surrounding Italy's referendum, Deutsche Bank, Italian Banks, UK banks, Brexit, etc. Quite a few potential catalysts for volatility, so, if we see this ETF break the linear regression channel...
It has a hit a LT trend line with a LT resistance ( 4HR ) and the opportunity could be a big one on either the down or upside. Keep a good look at it.