After seeing strong and expected growth towards the end of the week I'm writing now about a dead cat bounce. Currently you should not only look at the chart analysis of the euro. There are many uncertainty factors which could stop the growth of EUR/USD.
Psychological / Fundamental Analysis
The debate on the Italian budget is not yet over and could actually plunge the euro into a small crisis, unlike Greece. Italy has significantly higher contributions in the euro area which are painfully noticeable in the case of a loss. Furthermore a strong dollar stop the growth of EUR/USD .The ECB's 0% interest rate policy is also not really good for the growth of EUR/USD.
Technical analysis
We are currently in a downtrend and within an Elliot wave which the correction wave 4 has completed perfectly and now attaches to the last wave 5. The final wave should end at 1.12, setting a new all-time low for 2018. The 100D moving average line is also coming down which is an bearish indicator. We could see a test of this line within the next week.
MACD: is still under the baseline and bearish
RSI: looks like a downwards trend from which the dead cat bounce also perfectly reflects
In the current political and economic situation I would not recommend an long position in EUR/USD
Psychological / Fundamental Analysis
The debate on the Italian budget is not yet over and could actually plunge the euro into a small crisis, unlike Greece. Italy has significantly higher contributions in the euro area which are painfully noticeable in the case of a loss. Furthermore a strong dollar stop the growth of EUR/USD .The ECB's 0% interest rate policy is also not really good for the growth of EUR/USD.
Technical analysis
We are currently in a downtrend and within an Elliot wave which the correction wave 4 has completed perfectly and now attaches to the last wave 5. The final wave should end at 1.12, setting a new all-time low for 2018. The 100D moving average line is also coming down which is an bearish indicator. We could see a test of this line within the next week.
MACD: is still under the baseline and bearish
RSI: looks like a downwards trend from which the dead cat bounce also perfectly reflects
In the current political and economic situation I would not recommend an long position in EUR/USD
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
