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Neckline

Are we in a double bottom formation?EURUSD is a very mechanical pair, reacting to macroeconomic situation and sharp on political statement. Baring in mind the situation of indicators and the picture, we may be on the eve of a formation of a double bottom. Political situation in Europe, recent statements of ECB President Draghi , statements that had an effect on the market but on a long run, no one knows yet how his word would be transformed into actions. On the other hand, FED President is still applying the tappering policy, but leave a room to delay the end of it. Interest rate will not be increased immediately by FED, nor by ECB despite the inflation rate of 0.8%. Therefore, there may be a quick move upward before ECB and others react. Draghi stipulated that Europe need competitiveness and you can't be competive with a strong EUR. Markets should fall down a little bit and Yellen may need to make a statement to reassure that the QE may continue if needed. So many element in favor of this idea which is a first move again toward. 1.40 and above. And then an genuine intervention of ECB as well as a description of ECB's possible QE which by the way may be ABS(Asset Backed Securities).... And then EUR may be down progressively from 1.40 to 1.31 and below.... It is just an idea, a possible scenario we may keep in mind...
by Pashabxl