Hello dear investors and fellow traders!
• Comment on last week:
The single European currency ended the last week on September 7-12 ambiguously, although by the end of the week the euro rose by 8 points.
Macroeconomic data, which came out better than expected, all turned out to be extremely negative, and the new restrictive measures caused by the spread of covid do cause our concerns. Thus, Austrian Chancellor Mr. Kurz announced Austria's entry into the 2nd wave of covid.
The positive reaction of the euro to Madame Marin Lagarde's speech was caused by the disappointment of market participants' expectations to hear a tougher stance on the strengthening of the bloc's currency.
However, this reaction did not last long.
"Improving economic data in the United States and its deterioration in the Eurozone, corrections in global stock markets, geopolitical tensions between the United States and China, Brexit, an increase in the number of covid cases in Europe, restrictive measures and a record large position of speculators on the growth of the euro.
All these factors make it impossible for the euro to move upward without additional intervention from the Fed.
The outlook is bearish. "
Manager, WMCI Europe Fund
Melnikov Sergey.
• Technical analysis:
H1
The shift of High and Low levels is lower than the previous indicators. The currency pair broke through the ascending channel, but returned and these attempts met a decent resistance - a local triangle was formed.
H4
The pair demonstrates a highly significant support zone for the bulls:
1.1766-1.1752.
D1
Euro continues to consolidate after the recent rally, moving lines have gathered together, rsi continues to decline, although the pair remains in an uptrend.
Respectfully
WMCI
• Comment on last week:
The single European currency ended the last week on September 7-12 ambiguously, although by the end of the week the euro rose by 8 points.
Macroeconomic data, which came out better than expected, all turned out to be extremely negative, and the new restrictive measures caused by the spread of covid do cause our concerns. Thus, Austrian Chancellor Mr. Kurz announced Austria's entry into the 2nd wave of covid.
The positive reaction of the euro to Madame Marin Lagarde's speech was caused by the disappointment of market participants' expectations to hear a tougher stance on the strengthening of the bloc's currency.
However, this reaction did not last long.
"Improving economic data in the United States and its deterioration in the Eurozone, corrections in global stock markets, geopolitical tensions between the United States and China, Brexit, an increase in the number of covid cases in Europe, restrictive measures and a record large position of speculators on the growth of the euro.
All these factors make it impossible for the euro to move upward without additional intervention from the Fed.
The outlook is bearish. "
Manager, WMCI Europe Fund
Melnikov Sergey.
• Technical analysis:
H1
The shift of High and Low levels is lower than the previous indicators. The currency pair broke through the ascending channel, but returned and these attempts met a decent resistance - a local triangle was formed.
H4
The pair demonstrates a highly significant support zone for the bulls:
1.1766-1.1752.
D1
Euro continues to consolidate after the recent rally, moving lines have gathered together, rsi continues to decline, although the pair remains in an uptrend.
Respectfully
WMCI