EUR/USD: Swing-Setup#1! Important: READ the description!
Hey tradomaniacs,
welcome to another signal by trading2ez.
Important: Don`t do anything before we`ve seen that the market bounces of the triangle again!
EUR/USD could easily go back into this pattern since the market is so volatile and uncertain!
---------------------------------------
Type: Swingtrade
Sell-Stop: 1,13146
Stop-Loss: 1,13622
Target 1: 1,270
Target 2: 1,21155
----------------------------------------
Attention:
We could see a "FED-RALLY" this week but is that likely?
The problem is the current interest yield curve of the UST 2s and 10s.
Banks are suffering from the inverted curve which causes that short-term-loans are
more profitable than long-term-credits thus it is "more risky" to lend money in the short-term due to
the current circumstances showing a cool down of the economy.
Usually investors begin to invest into safe havens in the long-term in order to protect their cash
from a crash of the markets. That means that long-term-investments or "credits" are less risky and
less profitable.
Why is that a problem? Because the banks buisness is to lend money in the short-term in order
to use that money for lending long-term-credits.
So if short-term-loans are more expensive than the long-term-credits are profitable, then why should a bank continue with
that business? They would have to pay more for the money they borrow than they earn with the loan originating.
This is btw. called the "term transformation".
So if the banks stop to lend we`ll see less liquidity, and less liquidity means less consume and less investments
and is a huge problem for ineffecient companys that "survived" by the previous cash injections.
Can the FED safe the Wallstreet this week?
The saisonality is great and a dovish statement could spread optimism!
-----------------------------------------------------------------------------
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me.
Any questions? PM me. :-)
welcome to another signal by trading2ez.
Important: Don`t do anything before we`ve seen that the market bounces of the triangle again!
EUR/USD could easily go back into this pattern since the market is so volatile and uncertain!
---------------------------------------
Type: Swingtrade
Sell-Stop: 1,13146
Stop-Loss: 1,13622
Target 1: 1,270
Target 2: 1,21155
----------------------------------------
Attention:
We could see a "FED-RALLY" this week but is that likely?
The problem is the current interest yield curve of the UST 2s and 10s.
Banks are suffering from the inverted curve which causes that short-term-loans are
more profitable than long-term-credits thus it is "more risky" to lend money in the short-term due to
the current circumstances showing a cool down of the economy.
Usually investors begin to invest into safe havens in the long-term in order to protect their cash
from a crash of the markets. That means that long-term-investments or "credits" are less risky and
less profitable.
Why is that a problem? Because the banks buisness is to lend money in the short-term in order
to use that money for lending long-term-credits.
So if short-term-loans are more expensive than the long-term-credits are profitable, then why should a bank continue with
that business? They would have to pay more for the money they borrow than they earn with the loan originating.
This is btw. called the "term transformation".
So if the banks stop to lend we`ll see less liquidity, and less liquidity means less consume and less investments
and is a huge problem for ineffecient companys that "survived" by the previous cash injections.
Can the FED safe the Wallstreet this week?
The saisonality is great and a dovish statement could spread optimism!
-----------------------------------------------------------------------------
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me.
Any questions? PM me. :-)
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