Euro Wrap Up
The pair sat 1.3090 as NY opened. An early dip below the 200 HMA (1.0386) was erased on comments from Germany's Schaeuble. He stated he would welcome the ECB trying to reduce liquidity. EUR spiked higher. EUR/USD lifted from 1.3075 to session highs of 1.3130. The move was quickly reversed though as additional comments from Schaeuble said EU countries are in a precarious state regarding growth. ECB’s Weidmann stated rates are appropriate but if data changes the ECB would need to check again. EUR/USD spiked a bit but it was short lived. He qualified his statements to DJN saying the comments are not meant to signal trend change on ECB rates. EUR/USD resumed its slide & hit a NY low of 1.3054 & sat just above it heading into the close. Bears are encouraged as the pair continues to consolidate at recent lows while it forms a bear flag pattern. The RSI looks set to roll over again & the pair is back below the 10 DMA. A break down from the flag likely sees 1.3000 tested and puts large stops through 1.2990 in jeopardy and could open the door to the 200 DMA.
The pair sat 1.3090 as NY opened. An early dip below the 200 HMA (1.0386) was erased on comments from Germany's Schaeuble. He stated he would welcome the ECB trying to reduce liquidity. EUR spiked higher. EUR/USD lifted from 1.3075 to session highs of 1.3130. The move was quickly reversed though as additional comments from Schaeuble said EU countries are in a precarious state regarding growth. ECB’s Weidmann stated rates are appropriate but if data changes the ECB would need to check again. EUR/USD spiked a bit but it was short lived. He qualified his statements to DJN saying the comments are not meant to signal trend change on ECB rates. EUR/USD resumed its slide & hit a NY low of 1.3054 & sat just above it heading into the close. Bears are encouraged as the pair continues to consolidate at recent lows while it forms a bear flag pattern. The RSI looks set to roll over again & the pair is back below the 10 DMA. A break down from the flag likely sees 1.3000 tested and puts large stops through 1.2990 in jeopardy and could open the door to the 200 DMA.
Trade smaller than rational because the market is irrational...