Here a very good time to update the Daily chart in EURUSD as we approach the infamous "Loading Zone" at 1.104x for the European close. A temporary reprieve for US data but in this case sellers have already exposed their stops on the highs while buyers continue to load on the ranks.
The exchange/consolidation in the short-term flow makes it possible for buyers to continue loading at support. But in this case too, a quiet move (after the powerful moves in Asia) namely consolidation at support then check-mate on the next breakup. This will likely come tonight by Bernie winning in Iowa which will weigh heavy on the USD.
You will notice the concentration of forces on the Weekly related diagram:
In this position, the direct exploitation of calm waters after the storm is forcing away many participants. It is of prime importance to perform this manoeuvre in the Asian session! Good luck all those in EURUSD, I tactically stay long and watch 1.12xx handle for a break above. To the downside reassessment is only necessary below 1.095.
Thanks as usual for keeping the likes and comments coming, jump into the comments with your charts and we can open the discussions!
What’s the update on EURUSD ? This completely went the opposite direction
ridethepig
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Yes @ameertaylorwrk coronavirus shock short-circuited the flow...chart updates coming soon
lu1977hk
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@ridethepig, Coronavirus????? Stock market up and Euro down, has anything to do with Coronavirus? Since December you have been consistently wrong on all the asset classes you cover but Bitcoin. I hope your new analysis will do better...
ridethepig
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Indeed it is noteworthy how the Equities rally continues despite risks and uncertainty ticking higher. EUR is hit via spillovers @lu1977hk and currency is seeing the impact initially before earnings takes the hit in the coming months (hence the move first is in EURUSD). Now a question of how much it feeds through into earnings is yet to be seen but if China is slow for more than 1Q it will have major implications on the manufacturing recovery in Europe and cast dark clouds over the EURUSD rally.
ridethepig
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It short-circuited the reflationary flows from Q419 that markets were happy to get on board with, from the technical side it was obviously pointless to hold once we lost the 1.095x as the lows were then exposed. Hope it helps...