The short-term update I published earlier proved to be wrong. I still hold on to my modest short position and look to extend it in the zone as drawn in this chart.
I still consider us being in an upwards wedge, and expect a move down in the next 4-24 hours.
Fundamentally I don' t expect the ECB to stand down after the unlimited QE news of the FED. The risk to the EU economy is too big to let this play out without further action. Besides, the EU is in for a new period of uncertainty. The economical challenges we are facing are very difficult to navigate. The EU has proven in the past it is very divided about how to handle issues like this. Every country has its own agenda and political leaders are simply taking advantage of the fact they share one value of account together with their neighboring countries wherever they can. This wont reflect well in any crisis on the value of the EUR.
I still consider us being in an upwards wedge, and expect a move down in the next 4-24 hours.
Fundamentally I don' t expect the ECB to stand down after the unlimited QE news of the FED. The risk to the EU economy is too big to let this play out without further action. Besides, the EU is in for a new period of uncertainty. The economical challenges we are facing are very difficult to navigate. The EU has proven in the past it is very divided about how to handle issues like this. Every country has its own agenda and political leaders are simply taking advantage of the fact they share one value of account together with their neighboring countries wherever they can. This wont reflect well in any crisis on the value of the EUR.