The situation on the currency market has changed this week. Bulls were running EUR/USD towards new highs and almost completed their task. However, they were stopped right above 1,1600 and the currency pair has reversed there.
What are the reasons for such change in moods? First, Italian budget issue is the topic number one currently. We do not think that this problem may become a true crisis. However, risky moods have disappeared currently.
The second reason is Brexit. Yes, EU depends less on the results of the deal. However, anyway, it will influence the European Union. Those two aspects are pushing EUR/USD lower currently.
What about the targets? We think that the currency pair is unlikely to establish new lows far below 1,1500. It is more likely that EUR/USD will form a reverse signal somewhere close to the lows from October 9.
What are the reasons for such change in moods? First, Italian budget issue is the topic number one currently. We do not think that this problem may become a true crisis. However, risky moods have disappeared currently.
The second reason is Brexit. Yes, EU depends less on the results of the deal. However, anyway, it will influence the European Union. Those two aspects are pushing EUR/USD lower currently.
What about the targets? We think that the currency pair is unlikely to establish new lows far below 1,1500. It is more likely that EUR/USD will form a reverse signal somewhere close to the lows from October 9.