{"id":131857,"date":"2018-08-13T07:01:37","date_gmt":"2018-08-13T11:01:37","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=131857"},"modified":"2018-08-13T06:33:36","modified_gmt":"2018-08-13T10:33:36","slug":"eurusd-liras-collapse-putting-pressure-on-the-euro","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/eurusd-liras-collapse-putting-pressure-on-the-euro\/","title":{"rendered":"EURUSD: lira\u2019s collapse putting pressure on the euro"},"content":{"rendered":"<div id=\"inves-426058686\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 13, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><div>\n<div class=\"reviews-item__header\">\n<div class=\"reviews-item__info s_float_l\">\n<p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"reviews-item__content\">\n<p>On Friday the 10<sup>th<\/sup>\u00a0of August, trading on the US dollar index closed up by a decent amount. The dollar\u2019s rally against the lira had a ripple effect on other currencies. The lira\u2019s rapid drop on Friday took its toll on the euro, with the EURUSD pair, in turn, dropping to 1.1388.<\/p>\n<p>According to the Financial Times, the ECB has expressed concerns over the potential impact the Turkish lira crisis could have on certain French, Italian, and Spanish banks. Shares dropped across the European banking sector on Friday.<\/p>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/w_130818_1_5b712248ccf49.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. USD over the last week.<\/p>\n<p>Last week, nearly all the major currencies dropped against the dollar. The biggest drop came from NZD (-2.45%). The British pound shed 1.78%, the Aussie dollar lost 1.35%, the euro 1.34%, the Canadian dollar 1.11%, and the Swiss franc dropped 0.06%. The Japanese yen gained 0.37%.<\/p>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/d_130818_2_5b71225ae123f.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 2. USD on Friday<\/p>\n<p>The Aussie and euro were the biggest losers against the dollar on Friday. With the lira\u2019s collapse, market participants ignored everything else.<\/p><div id=\"inves-2442829857\" 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><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>Today\u2019s economic calendar in empty.<\/li>\n<li>Monthly OPEC report.<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/eur_130818_en_5b7122ab4abe7.jpg\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 3. EURUSD hourly chart. Source: TradingView.<\/p>\n<p>The euro dropped to 1.1388 on Friday on the back on the Turkish lira\u2019s collapse and a retreat from risky assets. The lira has lost 30% against the dollar in 3 days, including today\u2019s trading.<\/p>\n<p>Since the the euro is under the influence of geopolitical factors, as well as being in the reversal zone (below the MA D3 line, the first blue line), I\u2019ve decided not to make a forecast. The euro hasn\u2019t been in this zone for long, so a rebound could happen at any minute to take us back to the LB balance line (sma 55). On the current bar, this line runs through 1.1505. The euro will probably meet this line in tomorrow\u2019s Asian session at around 1.14.<\/p>\n<p>Sellers have broken the weekly trend line at 1.1560. This suggests that the euro could return to 1.12. The worst case scenario for buyers would be a drop to 1.0867 by November.<\/p>\n<p>Today\u2019s economic calendar is empty. All eyes are fixed on Turkey and European stock indices. In Asia, the euro has dropped to 1.1368. If trading in Europe opens peacefully, there\u2019s a chance of a correction to 1.1421.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: lira\u2019s collapse putting pressure on the euro<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari On Friday the 10th\u00a0of August, trading on the US dollar index closed up by a decent amount. The dollar\u2019s rally against the lira had a ripple effect on other currencies. The lira\u2019s rapid drop on Friday took its toll on the euro, with the EURUSD pair, in turn, dropping to 1.1388. [&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-131857","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131857","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=131857"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131857\/revisions"}],"predecessor-version":[{"id":131858,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131857\/revisions\/131858"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=131857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=131857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=131857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}