Is Draghi going to rescue the EUR? ECB Pre-Analysis 7/8/14
We saw that the uptrend from the end of 2013 got destroyed just by one sentence:
"We are going to manage the strenght of the Euro against the Dollar in June."
The market got in a really overextended selling rally. Additional to that "market panic" positive US ecenomy values got released and Ukraine crisis destroyed stocks and indices of the european countries. This summary of negative influence on the EUR pushed the EUR/USD to a new yearly low.
But a big part of this rally was just a psychological reaction of the market participants after the statment of Mario Draghi.
This baseless loss of value is a kind of movement which gets a correction shortly after its happening. But the fundamental status prevented this "correction" after the loss of ca.300 points from 1.3993 towards 1.37 the market never experienced the correction of this 300 point rally.
Therefore I expect a correctional movement towards FIB 50% or towards the MA 200 just for the cause of giving the EUR/USD its fair price.
"We are going to manage the strenght of the Euro against the Dollar in June."
The market got in a really overextended selling rally. Additional to that "market panic" positive US ecenomy values got released and Ukraine crisis destroyed stocks and indices of the european countries. This summary of negative influence on the EUR pushed the EUR/USD to a new yearly low.
But a big part of this rally was just a psychological reaction of the market participants after the statment of Mario Draghi.
This baseless loss of value is a kind of movement which gets a correction shortly after its happening. But the fundamental status prevented this "correction" after the loss of ca.300 points from 1.3993 towards 1.37 the market never experienced the correction of this 300 point rally.
Therefore I expect a correctional movement towards FIB 50% or towards the MA 200 just for the cause of giving the EUR/USD its fair price.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.