Trading Proverbs: “If you are given a choice between money and sex appeal, take the money. As you get older, the money will become your sex appeal”.- K. Hepburn
The Single currency slumped to a new low of $1.1763 on Wednesday before recovering quickly above $1.1800 this morning. The currency's theatrical run down was attributed to Italy’s heightened political uncertainty as It has been reported that the anti-establishment Five Star Movement and the anti-immigration League are discussing to seek a debt relief of EUR 250 billion from the ECB, putting fuel over Italy’s creditworthiness.
However, a report from Corriere della Sera, an Italian daily newspaper, cited that the request for the debt write-off has been dropped by the European Central Bank.
Technical outlook- EUR/USD faded the drop to a new low as expected, Wave C of a corrective setback could be in play!
The EUR/USD made a comeback to $1.1818 after dumping into a fresh yearly low of $1.1763 yesterday.
In an Elliott wave perspective, wave B of a corrective flat structure highlighted a few days ago may have found its footing yesterday. In the near term, the pair could possibly move higher in wave C of a corrective setback to $1.2050/1.2120.
On the downside, a break below $1.1760 will open the door for further weakness near $1.1710.
Now, let’s see if price action will adhere to the corrective Flat structure posted on 15.05.18
Posted 2 days ago
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