· Falling like a dead weight in the sky, downward pressure remains
· Losing the height rapidly, settle below a safe altitude
·The price going down and down as the selling grew thicker and noisy
EURUSD has plunged about 5.00%year to date; it’s been a red-letter year
The common currency had hit a fresh record low this year, closed below 1.1000 for the first time since May 2015. In spite of this fall, does not mean there are no opportunities to bulls in the market because this kind of weakness is a part of the economic cycle. We expect the price will park the brakes between 1.0850-1.0500 levels in the coming months.
One has to be with the right approach and strategy, at the right time that makes the trade profitable. We always publish plenty of information available about trading EURSUD, which has a high profitable ratio.
Turning to the technical picture, the price has run through the first target we set last Friday, which is its C point on the weekly chart.
Forecast“ A lasting break of the 1.1020-1.1000 sounds tricky, and we rather fear a decline to 1.0960 (C point on the weekly chart).” Note that a break below this level would underpin bearish momentum, paving the way for a decline to 1.0860 (point C on the daily chart).
The latest developments of the Italian political crisis suggest new center-left government coalition likely to emerge, avoiding early elections.
Moody’s Analytics said, “Italy’s new government coalition will likely reduce tensions with EU, but detailed policy direction yet to emerge.”
In their Credit outlook report on Sep 02 Moody’s said “For the time being, the formation of a new government avoids snap elections that would most likely lead to a Lega-led government that would be likely to pursue its costly flat tax proposal. But while M5S and PD will aim to complete the current legislature that runs until 2023, this is far from assured. As a result, we believe that political noise will remain elevated and the risk of a Lega-led government remains.”.
We believe the Italian political crisis has eased for the time being.
Looking ahead macro data-wise, EA PMI readings, Germany IP, and Final Q2GDP estimate are the key drivers for the common currency.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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