Well, there are some moment where the initial Ichimoku picture speak by itself, and there are times where you need to dig more and watch carefully before taking the right direction.
In the present case, The pattern is between a Dark Cloud Cover and a Bearish Engulfing. Therefore the next candle of the day is very important.
On a purely chartist approach, we need to see the next candle to confirm. But if we see the orientation of the RSI, as well as EURUSD 1H, 4H hours, it looks as if the trend will be confirmed, which menas that EUR will resume its downtrend. However, it is yet a little it early.
On the upside 1.1323 should be broken to confirm the upside correction, above 1.135, it may be considered as a possible change of trend. On the dowside, bellow 1.115, it may be considered as EUR resuming its downtrend.
On the macro economic front, we do have the adage that says sell in may come back in September. If that will be the case for US market traders, there will be plenty of USD floating in the market and this will favor a low USD against EUR. On the other hand, ECB is continuing to flow the market with its QE, another 60 Bio €will come this week on the market. So the war of currency is to be watched. Yet a low Eur is the aim of ECB since they have this policy of importing Inflation to EU market and the commodity prices are not high enough.
ECB has more room of manoeuvre then FED but FED is more creative ;-) Fake expectation for economic datas may be uses as an info ops for the market. My last sentece is just a speculation,for fun nothing that I know of.
In the present case, The pattern is between a Dark Cloud Cover and a Bearish Engulfing. Therefore the next candle of the day is very important.
On a purely chartist approach, we need to see the next candle to confirm. But if we see the orientation of the RSI, as well as EURUSD 1H, 4H hours, it looks as if the trend will be confirmed, which menas that EUR will resume its downtrend. However, it is yet a little it early.
On the upside 1.1323 should be broken to confirm the upside correction, above 1.135, it may be considered as a possible change of trend. On the dowside, bellow 1.115, it may be considered as EUR resuming its downtrend.
On the macro economic front, we do have the adage that says sell in may come back in September. If that will be the case for US market traders, there will be plenty of USD floating in the market and this will favor a low USD against EUR. On the other hand, ECB is continuing to flow the market with its QE, another 60 Bio €will come this week on the market. So the war of currency is to be watched. Yet a low Eur is the aim of ECB since they have this policy of importing Inflation to EU market and the commodity prices are not high enough.
ECB has more room of manoeuvre then FED but FED is more creative ;-) Fake expectation for economic datas may be uses as an info ops for the market. My last sentece is just a speculation,for fun nothing that I know of.
