EURUSD has respond to ECB decision to lower the interest rate. The decision was already known. Market anticipate the decision and from 1.3980, Euro went down to 1.372 and then 1.3502. ECB confirmed its decision to lower the interest rate, and now the market is in a kind of political equilibrium, but not yet in an equilibrium between BULL and BEARS.
Indicators show clearly that we are at an oversold level. Therefore, there will "normally" go into a corrective trend towards 1.36, then 1.3660, above that level, it may be the dynamic and the last try of BULLS against BEAR and the market may very well try to hit towards 1.372.
And if we do bare in mind that during summer time, there is a respectable balance between USD spent by tourist vs Euro spent by tourist, although it has a marginal effect, The ultimate target may still be 1.38 or even 1.385.
But overall, after the last try, Euro should go down towards 1.35, and then 1.33 and even bellow in order to trade between a range of 1.33 and 1.29 because of the tappering olicy of FED, ECB low interest rate, the end of FED's QE3 etc.
Yesterday, I have published the latest state of play with regard EURUSD pair and the trend remain still the same unless there is a major change in the market.
Indicators show clearly that we are at an oversold level. Therefore, there will "normally" go into a corrective trend towards 1.36, then 1.3660, above that level, it may be the dynamic and the last try of BULLS against BEAR and the market may very well try to hit towards 1.372.
And if we do bare in mind that during summer time, there is a respectable balance between USD spent by tourist vs Euro spent by tourist, although it has a marginal effect, The ultimate target may still be 1.38 or even 1.385.
But overall, after the last try, Euro should go down towards 1.35, and then 1.33 and even bellow in order to trade between a range of 1.33 and 1.29 because of the tappering olicy of FED, ECB low interest rate, the end of FED's QE3 etc.
Yesterday, I have published the latest state of play with regard EURUSD pair and the trend remain still the same unless there is a major change in the market.