Some time ago I explained why I believe in weaker US dollar, but the EURUSD had other plans at that time. Right now I still believe in the same idea, just in a broader term. In addition to the technical analysis, I see also some fundamentals to support weaker US Dollar:
-- Fed rate hike did not bring a boost in US Dollar as many forecasted. I find interesting an idea that the market was getting ready for the rate hike already from the beginning of September and the rate hike should have been more impressive to keep the US Dollar from depreciating further against the Euro.
-- Weaker US Dollar is more advantageous for exports. Taking into account the pro-business mindset of President Trump, a weaker US Dollar might be in his agenda.
-- Uncertainties around the tax reform.
-- Fed rate hike did not bring a boost in US Dollar as many forecasted. I find interesting an idea that the market was getting ready for the rate hike already from the beginning of September and the rate hike should have been more impressive to keep the US Dollar from depreciating further against the Euro.
-- Weaker US Dollar is more advantageous for exports. Taking into account the pro-business mindset of President Trump, a weaker US Dollar might be in his agenda.
-- Uncertainties around the tax reform.
Trade closed: target reached:
Take profit target was reached and the trade is closed now. It seems that EURUSD has stopped its rally and we are up for a correction.
