EUR USD SELL (EURO – US DOLLAR)
Hi there. For short term, price is still in the continuation pattern for one more move down. For medium – longer term we still see a big move to the upside on EURUSD . Just wait for the price to hit the bottom of the pattern and watch strong price action for buy.
Nordea’s Bank opinion that supports our medium – longer term forecast:
“We found the ECB’s updated staff forecasts for the economy too optimistic and especially thought it was odd that the ECB still characterized the growth risks as balanced. Recent PMI data underpin the negative risks.
The account noted that while the view was expressed that a case could be made for assessing risks to activity as tilted to the downside, the more negative news had already been incorporated in the baseline forecasts, while new upside risks had emerged, namely a further decline in oil prices since the cut-off date for the projections and the likelihood of more stimulus coming from fiscal measures. The fundamental factors supporting the economic expansion were seen to have remained in place.
The risk assessment is changing, however, since it was noted that the balance of risks was moving to the downside, owing to the persistent prominence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility”.