EUR/USD why was the rejection at 1.2132? what shall be expected?
As was mentioned in previous posts all the fundamentals now are backing the dollar's appreciation, and in this post before I explain why the price was rejected from 1.2132? and what shall be expected in the near term? I would like to add more fundamentals that shall push for more lower lows.
FUNDAMENTAL KEY QUOTES
1- Biden's proposal of the new 6 trillion dollar spending plan, despite it has a long way to be approved, it sees unemployment holding below 4% for most of the next decade, and inflation remaining stable.
2- The rise in the 3 U.S. indexes reflects that the economic rebound tempered inflation worries.
3- ECB is seen to extend its elevated pace of its emergency bond buying at its next meeting, despite a likely economic rebound, top officials pushed back against the idea that they are ready to slow purchases, the scene is set for yet more ultra loose policy.
4- Upbeat U.S. data seen on Friday ( Personal spending, Chicago PMI, Michigan consumer sentiment ).
WHY THE PRICE WAS REJECTED AT 1.2132?
- The high inflation combined with loose monetary policy shall lead to a depreciation of currency and that is the only USD problem at the moment and capping the downtrend.
The CORE PCE PRICE INDEX data on Friday showed a surge of 3.1%, the reading that signs for a high inflation and reminding the market that the dollar is in such situation of being overvalued.
What shall be expected next week?
- As long as the inflation causes worries and caps the downtrend, technically without this problem we shall be on a downtrend which means the price range shall break below 1.2050, but this is UNLIKELY to happen in the existing inflation story, fake outs may happen at the recent time, uptrends may take place and keep taking rejections ( HAPPENED LAST WEEK )
- Price range in the current situation ( 1.2300 - 1.2100 )
- Any attempt towards ( 1.2280 - 1.2300 ) would be a good SELLING opportunity
- Any attempt towards ( 1.2100 - 1.2080 ) would be a good BUYING opportunity
IT IS WISE TO REMEMBER THAT FUNDAMENTALS CAN CAUSE A CHANGE OF DIRECTION AT ANYTIME, SO THIS PICTURE REMAINS ONLY TILL ANY UPCOMING NEWS AND DATA THIS WEEK, SO I WILL UPDATE WITH CHANGES ACCORDINGLY.
FUNDAMENTAL KEY QUOTES
1- Biden's proposal of the new 6 trillion dollar spending plan, despite it has a long way to be approved, it sees unemployment holding below 4% for most of the next decade, and inflation remaining stable.
2- The rise in the 3 U.S. indexes reflects that the economic rebound tempered inflation worries.
3- ECB is seen to extend its elevated pace of its emergency bond buying at its next meeting, despite a likely economic rebound, top officials pushed back against the idea that they are ready to slow purchases, the scene is set for yet more ultra loose policy.
4- Upbeat U.S. data seen on Friday ( Personal spending, Chicago PMI, Michigan consumer sentiment ).
WHY THE PRICE WAS REJECTED AT 1.2132?
- The high inflation combined with loose monetary policy shall lead to a depreciation of currency and that is the only USD problem at the moment and capping the downtrend.
The CORE PCE PRICE INDEX data on Friday showed a surge of 3.1%, the reading that signs for a high inflation and reminding the market that the dollar is in such situation of being overvalued.
What shall be expected next week?
- As long as the inflation causes worries and caps the downtrend, technically without this problem we shall be on a downtrend which means the price range shall break below 1.2050, but this is UNLIKELY to happen in the existing inflation story, fake outs may happen at the recent time, uptrends may take place and keep taking rejections ( HAPPENED LAST WEEK )
- Price range in the current situation ( 1.2300 - 1.2100 )
- Any attempt towards ( 1.2280 - 1.2300 ) would be a good SELLING opportunity
- Any attempt towards ( 1.2100 - 1.2080 ) would be a good BUYING opportunity
IT IS WISE TO REMEMBER THAT FUNDAMENTALS CAN CAUSE A CHANGE OF DIRECTION AT ANYTIME, SO THIS PICTURE REMAINS ONLY TILL ANY UPCOMING NEWS AND DATA THIS WEEK, SO I WILL UPDATE WITH CHANGES ACCORDINGLY.
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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.