Ransquawk

The EUR/USD is currently marking the second day of declines with a very large range. The key events of the end of the week are breaking out of the wedge formation and breaking the last lows. It seems, therefore, that we can read this as a signal of the continuation of the downward trend, all the more so as there is no reason for the appreciation of the dollar to be exhausted. The dollar remains the main winner of the trade conflicts with China, and with EU and recently strengthened sanctions against Russia. Recently, the ECB also assessed US protectionism as an important risk factor for the economies of the Euro zone. It is not surprising, therefore, that the European currency is losing a lot.

It looks interesting when we look at the chart on a monthly basis. It can be seen here that for 10 years the price has moved alternately respecting the edges of the bearish channel. The ongoing drops also had their origin at the upper edge. Although the story does not have to happen again, in the geopolitical situation we have it seems that we have quite a lot of space for further declines in the long run.

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