25 May, 2015
The Euro has been falling for almost a week now. The catalyst for the fall was Benoît Cœuré’s , (member of the Executive Board of the ECB) hints that the central bank may expand its stimulus package already next month.
The inflation rate has stabilized in the euro-zone and the economy is no longer moving towards deflation, however lets not keep our hopes up – a steady growth of inflationary expectations is needed, and not only from commodities.
There are rumors of default in Greece – lets wait and see if that turns out to be true or not. One thing is certain though – considering the weak macroeconomic calendar next week, traders will monitor the Greek comedy closely.
The pair has breached the ascending channel, so at this point we may consider selling at the breached ascending trend, where we can also find the breached horizontal level 1.1100:
On the monthly chart we are closing in on the monthly engulfing pattern:
That is why the chart may bounce back at 1.0875 for a short term:
On the H4 chart we should consider buying:
On the H4 chart there is a breached figure, which looks like a widening pattern and an inverted flag. The price can potentially fall to 1.0650. Given the fundamental data at hand, this scenario is quite possible:
The Pound collapsed 0.6% after the UK Prime Minister Theresa May...
The U.S. Dollar let the Euro take a significant lead...
The Canadian dollar has approached the 3rd point of the descending channel on the weekly chart. In the daily chart, the price has touched the horizontal level of 1.3387 in the form of a shooting star. Therefore, we should sell the pair at the market opening...
The plan successfully passed through the upper chamber and is now going to the committee stage where it’s likely to be amended to warrant better relations with the EU...
ECB Draghi is to address the parliament today and investors will be waiting for any hints on changes in the monetary policy. On the press-conference during the last ECB meeting the future seemed quite downbeat on the EU economic growth, while leaving QE without revisions...
The time has come to sell the Euro. The main scenario includes a pullback and testing the level 1.0764 with a further drop up towards the level 1.0659. Although, a drop may keep extending even further...
Bank of Japan stood pat on the meeting leaving the short-term and long-term policy rates unchanged at -0.1% and 0.0% respectively. BoJ head Kuroda is yet to clarify the further steps on pumping money into the Japanese economy at the press conference aimed towards stimulating the consumer spending and inflation...
Markets started the week with no sharp changes and lower trading volumes, due to the Martin Luther King Day in the US, ahead of the crucial monetary policy decisions of the ECB and BoC...
The rally of the American currency fizzles out, as FOMC Minutes release failed to surprise the markets. In the December´s speech Yellen emphasized the importance for the FED to keep pace with possible economic expansions during Trumps presidency...