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Euro’s side

During the annual meeting of the International Monetary Fund and the World Bank, European Central Bank President Mario Draghi hinted a positive sign for the euro zone economy as the consumer price growth would possibly reach its objective in late 2018 and early 2019. This was mostly attributable to the negative interest rate, free loans to banks and the quantitative easing program of $89 billion per month.

Besides, Governing Council member Vitas Vasiliauskas indicated that the Euro area inflation was about to climb to the target of just under 2%, which helped to reiterate the Euro zone’s economic recovery.  According to the ECB forecast announced in September, euro zone’s inflation would locate at 1.6% in 2018. The revised projections, which consist of the 2019 forecast, would be published in December. As a result, according to the report from Sentix on Monday (10/10), the investor confidence in October advanced to the level of 8.5, the highest level since July 2016.

However, today, the euro still cannot escape from falling, compared with the other major peers including the greenback. This was because German’s biggest lender, Deutsche Bank, failed to proceed a deal with the U.S. Department of Justice over a probe into mortgage-backed securities.



Fig. EURUSD H4 Technical Chart

On the H4 chart, the euro is tracking a solid downtrend against the greenback with 3-down candles today. ADX (14) headed up to the level of 42.6273, along with DI-line moving above the DI+ line, indicating the bear is taking the dominance over the bull. The signal trend still encourages a short position with the red-dot line casting shadow over the price chart.

Analyses of Group Fiinvesting

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