The EURUSD has gone nowhere since the end of 2017; notice 1.225 is the key trading level and support. The poor performance of European stocks in 2018 has perhaps been surprising; the market has lost its conviction about the coordinated global growth that dominated 2017 sentiment. The price clearly reflects investors confusion; on the one hand is an accommodative ECB and higher US rates, and the other are leading economic indicator data that has deteriorated for the EU in 2018.
With the EURUSD pulling back for the FOURTH time to 1.225 since the start of the year, and separately the COT reports showing long EURUSD as one the biggest consensus trades of 2018, my view for now is to anticipate a weaker EURUSD,with 1.2050 a target.
With the EURUSD pulling back for the FOURTH time to 1.225 since the start of the year, and separately the COT reports showing long EURUSD as one the biggest consensus trades of 2018, my view for now is to anticipate a weaker EURUSD,with 1.2050 a target.
Trade closed: stop reached
Comment:
Frustratingly this hit the stop, but now EURUSD is making its fifth test of 1.225, reconfirming the bearish trade.