EURUSD Lower
Updated
Trying EURUSD lower here.
From a technical standpoint we're forming a double top and we seem to be losing steam to move higher. We've also got a resistance zone above from a US CPI print earlier last year that could halt movement higher.
Narrative i think will move in favour of USD over January, global growth worries seem to be coming back a little bit as a result of rising covid cases on china and people are beginning to think that the reopening will not be as smooth as expected. We've also still got global tightening conditions which should also favour USD. EU energy worries are still a concern as well.
Correlations suggest lower, the US500 is moving lower and has been a good proxy to the EURUSD rally, peripheral yields are also moving lower which suggests movement to the downside in the pair.
Sentiment and positioning are very high currently so further movements higher could be tough.
seasonals suggest EUR weakness in January and USD strength.
Not trading/investment advise, feedback welcome!
From a technical standpoint we're forming a double top and we seem to be losing steam to move higher. We've also got a resistance zone above from a US CPI print earlier last year that could halt movement higher.
Narrative i think will move in favour of USD over January, global growth worries seem to be coming back a little bit as a result of rising covid cases on china and people are beginning to think that the reopening will not be as smooth as expected. We've also still got global tightening conditions which should also favour USD. EU energy worries are still a concern as well.
Correlations suggest lower, the US500 is moving lower and has been a good proxy to the EURUSD rally, peripheral yields are also moving lower which suggests movement to the downside in the pair.
Sentiment and positioning are very high currently so further movements higher could be tough.
seasonals suggest EUR weakness in January and USD strength.
Not trading/investment advise, feedback welcome!
Note
taking it out here for 1.95 win
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