Euro/USD long Term Trade
Updated
Fundamental side of the idea :
Clear signs are emerging that the global economy is now expanding rapidly after the sharp contraction caused by the coronavirus pandemic, and that should mean more losses for the safe-haven US Dollar and more gains for the currencies traders turn to when sentiment improves – the Euro included.
Bears have been unable to reel in the dominant Euro since March, which has seen a potential breakout of the multi-year symmetrical triangle formation. Fundamental factors have been substantial drivers of US Dollar weakness with decisive Euro policies and a more plateaued COVID-19 curve in the Eurozone affording a tailwind to EUR/USD bulls.
From my experience we are seeing a normal Pullback in The price right now ,Momentum crowd are buying The dollar because of the opening of the economy news , but the Real Fundamentals are not in thier Favors , as At the same time we're seeing a real economic boom, inflation is starting to pick up. The demand push of reopening and supply bottlenecks in product and labor markets are pushing up consumer prices on a variety of things tied to reopenings and stronger growth — hotel rooms, airfares, used cars, furniture, even lumber.
At the moment, it's well understood that the US economy is strong. With a botched vaccine rollout, a recovery in Europe is likely less well understood. Beyond Europe, many countries are still dealing with increased waves of COVID. Eventually, the tides will turn and growth will begin picking up in Europe as the economy gets closer to reopening and the rest of the world will get the pandemic under control. Thus, growth differentials will narrow as the economies of Europe and others play catch up to the US. Again, this isn't good for the US dollar.
Technical side of the idea :
I am waiting for a Retest to the down side , say around 1.1968 , 20 cent give or take , so i can take a long position in euro . direction 1.38 by 2023/2024 .
Thanks .
Do not hesitate to Contact me if you have any Quist .
S.Sadki
Best Regards
Clear signs are emerging that the global economy is now expanding rapidly after the sharp contraction caused by the coronavirus pandemic, and that should mean more losses for the safe-haven US Dollar and more gains for the currencies traders turn to when sentiment improves – the Euro included.
Bears have been unable to reel in the dominant Euro since March, which has seen a potential breakout of the multi-year symmetrical triangle formation. Fundamental factors have been substantial drivers of US Dollar weakness with decisive Euro policies and a more plateaued COVID-19 curve in the Eurozone affording a tailwind to EUR/USD bulls.
From my experience we are seeing a normal Pullback in The price right now ,Momentum crowd are buying The dollar because of the opening of the economy news , but the Real Fundamentals are not in thier Favors , as At the same time we're seeing a real economic boom, inflation is starting to pick up. The demand push of reopening and supply bottlenecks in product and labor markets are pushing up consumer prices on a variety of things tied to reopenings and stronger growth — hotel rooms, airfares, used cars, furniture, even lumber.
At the moment, it's well understood that the US economy is strong. With a botched vaccine rollout, a recovery in Europe is likely less well understood. Beyond Europe, many countries are still dealing with increased waves of COVID. Eventually, the tides will turn and growth will begin picking up in Europe as the economy gets closer to reopening and the rest of the world will get the pandemic under control. Thus, growth differentials will narrow as the economies of Europe and others play catch up to the US. Again, this isn't good for the US dollar.
Technical side of the idea :
I am waiting for a Retest to the down side , say around 1.1968 , 20 cent give or take , so i can take a long position in euro . direction 1.38 by 2023/2024 .
Thanks .
Do not hesitate to Contact me if you have any Quist .
S.Sadki
Best Regards
Trade active
We are Moving Higher now , next Targert : 1.25
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