EUR vs USD: how long can it last?
Updated
Hi Guys,
On Feb.6 support at 1.09910 (red horizontal line) was breached and the pair commenced a strong move down.
In 14 days the pair has reached 1.07780 which is almost a 2% drop.
What struck me is that the move is accompanied perfectly by the SMAs (blue & red) whilst the RSI runs below its median line.
Such move is attributed to the weakness of the European economy and fears of a downturn grow in the wake of the coronavirus epidemic.
At the same time Euro zone finance ministers are intensifying discussions on more growth-friendly fiscal policy. reuters.com/article/us-eurozone-eurogroup/euro-zone-ministers-discuss-fiscal-boost-options-as-virus-worries-weigh-idUSKBN20B13K
Here an article published by Investopedia in 2015 that highlights some pros.&cons.: investopedia.com/articles/forex/021215/pros-and-cons-weak-euro.asp
Please add your comments and if you have any questions please do not hesitate to ask.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
IMHO: The point of trading is to make money. To make money you must have money. Depending on the money at your disposal, you can decide what to do and how to do it. By having stops you decide how much you are willing to lose. By having targets you decide how much you want to earn. Be disciplined with your protocol and with your strategies for trading. Sometime you win, sometime you lose. Don't be greedy. Be realistic. Be wary but not afraid. Be curious. Use your brain. As long as your working process make sense and your spirit is calm, everything will be fine. Be patient and be prepared for any circumtances.
On Feb.6 support at 1.09910 (red horizontal line) was breached and the pair commenced a strong move down.
In 14 days the pair has reached 1.07780 which is almost a 2% drop.
What struck me is that the move is accompanied perfectly by the SMAs (blue & red) whilst the RSI runs below its median line.
Such move is attributed to the weakness of the European economy and fears of a downturn grow in the wake of the coronavirus epidemic.
At the same time Euro zone finance ministers are intensifying discussions on more growth-friendly fiscal policy. reuters.com/article/us-eurozone-eurogroup/euro-zone-ministers-discuss-fiscal-boost-options-as-virus-worries-weigh-idUSKBN20B13K
Here an article published by Investopedia in 2015 that highlights some pros.&cons.: investopedia.com/articles/forex/021215/pros-and-cons-weak-euro.asp
Please add your comments and if you have any questions please do not hesitate to ask.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
IMHO: The point of trading is to make money. To make money you must have money. Depending on the money at your disposal, you can decide what to do and how to do it. By having stops you decide how much you are willing to lose. By having targets you decide how much you want to earn. Be disciplined with your protocol and with your strategies for trading. Sometime you win, sometime you lose. Don't be greedy. Be realistic. Be wary but not afraid. Be curious. Use your brain. As long as your working process make sense and your spirit is calm, everything will be fine. Be patient and be prepared for any circumtances.
Note
This is how it looks the above move in the daily chart: Note
RSI in deep oversold territory. 10 (blue) and 20 (red) SMAs pushing down. 1.08825 (dotted red horizontal line) was previous low and it has been breached too.
Note
Weekly it seem the pair has more room to fall as sentiment get closer to RSI oversold area: Note
"...the easiest way to any euro area recovery would be for the Fed to signal more rate cuts - which remains elusive".://forexlive.com/news/!/short-eurusd-is-now-the-consensus-story-danske-bank-20200213
Note
"As such, the firm argues that "short EUR/USD is now the consensus story.However, the thing I want to point out is that consensus trades tend to be one of the more scarier trades in the market. Most of the time it results in the trade gradually moving in that direction before we see sharp retracements and pullbacks from time to time. And I reckon that may be the case for EUR/USD as long as the current narrative keeps up."
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