EURUSD is oversold on multiple time frames. DXY is currently at a significant support, coupled with todays Brexit news I am expecting to see a nice drop and downtrend continuation. Gap down expected at market open. The huge bull run resulted due to Brexit optimism, being that the deal was rejected it would be safe and logical to take short positions on EURUSD and GBPUSD. What do you guys think?
Agree, look at what I found The Euro has been on a tear higher over the last three weeks with the EXY Euro Currency Index climbing roughly 2% so far this month. The sharp jump in spot EUR/USD prices has threatened the most liquid forex pair’s overarching downtrend and has sent the DXY US Dollar Index plunging below major technical levels. Yet, a major fundamental risk for Euro lurks on the horizon that has been largely overlooked by markets.
The economic headwind posed by President Trump’s decision to levy tariffs on $7.5 billion of goods imported from the European Union scheduled to go into effect on October 18 – and the more severe threat of EU retaliation likely escalating into a full-blown trade war – could seriously jeopardize the Euro’s recent rally. Though the tariffs levied on EU exports (10% on commercial aircraft, 25% on agricultural and industrial goods) were given the green light by the WTO following the Airbus dispute case, EU officials like France’s Finance Minister Bruno Le Maire stated that the economic bloc will have little choice but to retaliate.
SemirFazlic
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@superiorinn, I definitely agree. There is so much pointing to the downside. Bulls will be in for a reality check soon. However, only time will tell.
The economic headwind posed by President Trump’s decision to levy tariffs on $7.5 billion of goods imported from the European Union scheduled to go into effect on October 18 – and the more severe threat of EU retaliation likely escalating into a full-blown trade war – could seriously jeopardize the Euro’s recent rally. Though the tariffs levied on EU exports (10% on commercial aircraft, 25% on agricultural and industrial goods) were given the green light by the WTO following the Airbus dispute case, EU officials like France’s Finance Minister Bruno Le Maire stated that the economic bloc will have little choice but to retaliate.