Monday, 5 August 2019

[EUR] V Pattern and Euro 2019 0805 1


The four-hour chart of currency pair, ‘EUR/USD’ has shown ‘V pattern’. It means the surging price of currency pair, and euro price has rocketed.

The sudden rising of price is due to U.S. President Donald Trump’s tweet of more tariffs being imposed on Chinese goods. His expected action may make worse the world economy, market think.

This ‘V pattern’ seems to succeed to make the pattern and trend-turning to upward, because the price of currency pair, ‘EUR/USD’ broke 1.1200 in futures market.

But we need to remind that ‘V pattern’ is less reliable than ‘double-bottoms pattern’ and ‘reverse Head-and-Shoulders pattern’. The price has enough possibility of falling in other words dollar long.

If we recall the price of euro recorded historical low since global finance crisis, weak dollar is supported again.

And we should know ECB, Europe Central Bank plans Quantitative Easing in the year.

The explicit trend of price is not shown yet.

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