Another week is done and we are going to make a brief resume of what has happened to EUR/USD during the last 7 days. We have made a mistake thinking that EUR/USD would stop at 1,1500. Unlike our forecasts, the currency pair went downwards and has broken through 1,1400 targeting 1,1300.
What has happened? The most disappointing fact was that the Eurozone rejected Italian budget plan, prepared by populists. There was no doubts about this conflict as Italy is governed by populists currently and they want to increase their score. From the other side, we don’t think that Eurozone will adopt such a budget and make exclusion for Italy at this point.
What’s next? The currency pair is preparing to reverse in the moment of writing. We can see that EUR/USD can’t reach 1,1300 and is unlikely to reach this level in the nearest future. We think that it is going to grow towards 1,1500 first. What is going to happen then? Let’s wait for EUR/USD to pick a flag at 1,1500 first.
What has happened? The most disappointing fact was that the Eurozone rejected Italian budget plan, prepared by populists. There was no doubts about this conflict as Italy is governed by populists currently and they want to increase their score. From the other side, we don’t think that Eurozone will adopt such a budget and make exclusion for Italy at this point.
What’s next? The currency pair is preparing to reverse in the moment of writing. We can see that EUR/USD can’t reach 1,1300 and is unlikely to reach this level in the nearest future. We think that it is going to grow towards 1,1500 first. What is going to happen then? Let’s wait for EUR/USD to pick a flag at 1,1500 first.