Euro / U.S. DollarShort
EUR/USD short after ECB rate decision
Hi traders.
I have taken a short position after an hourly close below the upper border of the down channel with a very tight stop. This move up has also reset the RSI on the 2 hour chart.
The second rate cut by the ECB came as no surprise since the powerhouse, Germany, has not had very good economic prints recently. Inflation has also softened, although Ms. Lagarde still expressed concern about sticky inflation. However, the forecast for CPI which will come hours before the FOMC rate decision next week, points significantly lower.
It appears that a 50 base point cut by the FOMC is no longer expected after the Mom CPI and PPI prints both increased. Jobless claims also stayed stagnant.
That leaves a significant spread between Euro Zone and USA yields.
The price action in early Asia that pushed the EUR/USD rate almost to this weeks high is likely because Japanese markets will be closed on Monday and Chinese markets will be closed Monday and Tuesday.
Expect more volatility though. Good luck all.
I have taken a short position after an hourly close below the upper border of the down channel with a very tight stop. This move up has also reset the RSI on the 2 hour chart.
The second rate cut by the ECB came as no surprise since the powerhouse, Germany, has not had very good economic prints recently. Inflation has also softened, although Ms. Lagarde still expressed concern about sticky inflation. However, the forecast for CPI which will come hours before the FOMC rate decision next week, points significantly lower.
It appears that a 50 base point cut by the FOMC is no longer expected after the Mom CPI and PPI prints both increased. Jobless claims also stayed stagnant.
That leaves a significant spread between Euro Zone and USA yields.
The price action in early Asia that pushed the EUR/USD rate almost to this weeks high is likely because Japanese markets will be closed on Monday and Chinese markets will be closed Monday and Tuesday.
Expect more volatility though. Good luck all.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.