The Euro Is In Deep Trouble
The Euro finally breaking through the crucial, whole and psychological 1.10 level. By breaking through 1.10 level, expect renewed selling pressure, with pull back presenting opportunities for new sellers to jump on board because of the following:
Although the US is been cutting rates, European Union’s interest rates are already in the negative. Thus, bond yields continue to favor the US as invest sell Euros and buy US Dollars.
Germany’s leading economic research institutes have sharply downgraded their forecasts for Europe’s largest economy. With Germany practically in a recession, the Institute revised down the Germany’s GDP growth rate from 0.8% GDP to 0.5%.
3) The US is expected to dramatically escalate trade tensions with Europe this month after a decision from the World Trade Organization on Wednesday.The US plans to levy a 10% tariff on aircraft from the bloc and a 25% tariff on other goods, including agricultural and industrial items, according to Bloomberg, which cited a senior US trade official. The finalized US Trade Representative list of affected products is expected to be published within a day.
Earlier on Wednesday, the WTO reached a historic ruling that authorized the US to impose punitive tariffs on $7.5 billion worth of European products. The decision, which was the largest-ever arbitration award granted by the organization, came after the EU was found to have illicitly aided Airbus.
So where is price headed…to the gap fill. A gap fill occurs due to a huge imbalance between buyers and sellers and usually occur due to an event or news. This gap happens to be a breakaway gap or continuation gap. All gaps get filled at some point or another as this gap is approaching the three year mark.
The next major stack of unfilled buy orders are sitting at 1.0500. I personally expect a bounce, but if we get that low, you start to hear about parity…price going to 1.0000.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
On which trading platform you trade, I plan to start trading on the traditional market. I need to spread the risk outside of the crypto sphere. ;)
I use Oanda for forex, Infinity Futures for day trading the futures market and tdameritrade (think or swim) for stocks and options.
Cool! Are you a full-time trader?
No, but that is the plan down the road.
Trading based on Gaps, I see that we share the same trading tools xD Love me some gaps, especially on Bitcoin, regardless of this, kinda bad that Euro is losing some steam, let's see if it can pick up the pace after the gap is filled, let's see if the levers ECB is playing with can bring the coin back up...
A lot of people trade crypto, I just can't doesn't fit my personality. Gap trading is big when day trading the equity markets. In order for the Euro to raise, the US dollar must fall...maybe in 2020.
The euro was doomed from inception
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Great point, but I give the European Union credit for trying.
Great point, but I give
The European Union
Credit for trying.
- rollandthomas
I'm a bot. I detect haiku.
It’s like CBDC. Better to experiment with stuff like that in small countries or regions. Caribbean Central Bank is a great trial run for sovereign digital currency. Supranational currency though... Maybe shoulda had that experiment with the former Soviet republics first (or something like Vanuata and Fiji and all those places). As it is, the PIGS are screwed for decades because some 70s Euro hippies thought it would be cool to have one European currency. It’s like “Haven’t you ever heard of the Fisher Effect?”
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Let it burn to the ground.
A financial crisis is not the end. The cows are still there, the tractors are still running. What is happening is the fracking of the State of Rule.
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Let's see where we Europeans still go with our euro.
I think after Draghi is finished here he continues in the usa.
If the printing presses in the usa run faster, the euro will also rise again.
Some southern countries like spain italy will have problems because the euro will be too expensive for them.