Trading proverbs: “Don't be addicted to money. Work to learn. Don’t work for money. Work for knowledge."- Robert Kiyosaki

 

The news…

 

The U.S dollar rose more than a quarter of a percent against its rivals  as persistent concerns over  global trade tensions between the United States and other countries combined with expectations of further tightening of the monetary policy by the Federal reserve have underpinned safe haven demand for the greenback across the board.  

 

On EM FX space, growing worries over emerging markets, especially those which are export-oriented economies, have kept investors in broader markets on the edge with no alternative than to park their money in the dollar.

 

Furthermore, the Common currency fell to a 10-day low of $1.1557 today in the wake of strong risk aversion on concerns over Italy’s fiscal health, while weak Eurozone and German manufacturing data yesterday have also contributed to recent euro sell-off.

 

 

Technical outlook: EUR/USD stumbled to a 10 day low of $1.1557, the decline could run out of steam in the coming sessions!!

 

Here is what we posted last week on the EUR well before the sell-off!

 

What could be expected on the EUR/USD?

 

The Common currency has been travelling south after the rejection from last week’s tops in the $1.1730 to finally trade close to our initial targeted level down at $1.1530 highlighted on 29^th August.

 

In an Elliott wave perspective, the EUR/USD could possibly find strong support near Wave 4 of a lesser degree around 1.1510/1.1530. Meanwhile, the drop from $1.1736  on the EUR/USD can be counted in 7 waves(red dotted lines) which is corrective in nature , don’t write off a possible bounce back to $1.1720 !!

 

On the downside, a break of $1.1508 could extend losses on the pair to $1.1467 followed by $1.1350!

 

What could be expected on the EUR/USD?

 

The Common currency has been travelling south after the rejection from last week’s tops in the $1.1730 to finally trade close to our initial targeted level down at $1.1530 highlighted on 29^th August.

 

In an Elliott wave perspective, the EUR/USD could possibly find strong support near Wave 4 of a lesser degree around 1.1510/1.1530. Meanwhile, the drop from $1.1736  on the EUR/USD can be counted in 7 waves( red dotted lines) which is corrective in nature , don’t write off a possible bounce back to $1.1720 !!

 

On the downside, a break of $1.1508 could extend losses on the pair to $1.1467 followed by $1.1350!

 

 

 

Disclaimer: This communication is provided for information and discussion purposes only. Unless otherwise indicated, it does not constitute an offer or recommendation to purchase or sell any financial instruments or other products. AfrAsia Bank does not guarantee or warrant the accuracy, reliability, completeness of the information in this publication.