{"id":116857,"date":"2017-11-21T07:32:26","date_gmt":"2017-11-21T12:32:26","guid":{"rendered":"http:\/\/countingpips.com\/?p=116857"},"modified":"2018-06-01T15:49:09","modified_gmt":"2018-06-01T15:49:09","slug":"eurusd-uncertainty-in-germany-continues-to-weigh-down-on-the-euro","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/eurusd-uncertainty-in-germany-continues-to-weigh-down-on-the-euro\/","title":{"rendered":"EURUSD: uncertainty in Germany continues to weigh down on the euro"},"content":{"rendered":"<div id=\"inves-916440049\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 21, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>On Monday the 20<sup>th<\/sup>\u00a0of November, trading on the euro\/dollar pair closed down. The euro was under pressure from the off due to the fact that German chancellor Angela Markel has failed to reach an agreement with other parties to form a coalition government.<\/p>\n<p>After a drop to 1.1722 (-73 pips), the euro hit a new intraday high of 1.1809. There were no fundamental factors behind this jump, so the price had returned to 1.1728 by the session\u2019s close.<\/p>\n<p>The dollar was given a boost by a rise in US bond yields. Mario Draghi then added to pressure on the euro. He didn\u2019t mention monetary policy in his speech, but he did talk about low inflation.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Switzerland: trade balance (Oct).<\/li>\n<li>12:05 Australia: RBA Governor Philip Lowe\u2019s speech.<\/li>\n<li>12:30 UK: public sector net borrowing (Oct).<\/li>\n<li>13:00 UK: inflation report hearings.<\/li>\n<li>14:00 UK: CBI industrial trends survey \u2013 orders (Nov).<\/li>\n<li>16:30 Canada: wholesale sales (Sep).<\/li>\n<li>16:30 USA: Chicago Fed national activity index (Oct).<\/li>\n<li>18:00 USA: existing home sales (Oct).<\/li>\n<li>18:00 Eurozone: ECB\u2019s C\u0153ur\u00e9 Speech.<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/eur_211117_5a13db6331878.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate on the hourly. Source: TradingView<\/p><div id=\"inves-2264526805\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Yesterday\u2019s rebound was unexpected. The price made it to the 67<sup>th<\/sup>\u00a0degree in a couple of hours. The euro\u2019s dropped gathered pace as the price corrected downwards from 1.1809 and broke the LB balance line down. Still, from the intraday high, the price fell by the same 67 degrees. In the end, this turned out to be a false breakout of the A-A channel.<\/p>\n<p>Market participants continue to watch the situation in Germany closely. German president Frank-Walter Steinmeier has called on the parties to try and reach a compromise. So long as there is uncertainty in Germany, I fear that on Tuesday, the euro is going to drop to the 112<sup>th<\/sup>\u00a0degree at 1.1674. I\u2019m expecting the drop to begin from 1.1755 (22 degrees). The quicker the price reaches 1.17, the higher the probability of my forecast working out. This will all fail if the hour closes above the LB balance line, although the price could repeat yesterday\u2019s movements.<\/p>\n<p>Trader activity will begin to subside towards the end of the week. The US will celebrate Thanksgiving on Thursday and markets will close early on Friday. Janet Yellen is set to speak on Wednesday night shortly after the publication of the minutes of the FOMC\u2019s latest meeting.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: uncertainty in Germany continues to weigh down on the euro<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Monday the 20th\u00a0of November, trading on the euro\/dollar pair closed down. The euro was under pressure from the off due to the fact that German chancellor Angela Markel has failed to reach an agreement with other parties to form a coalition government. After a drop to 1.1722 (-73 pips), [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-116857","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=116857"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116857\/revisions"}],"predecessor-version":[{"id":116859,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116857\/revisions\/116859"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=116857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=116857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=116857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}