{"id":137943,"date":"2018-11-27T08:37:24","date_gmt":"2018-11-27T13:37:24","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=137943"},"modified":"2018-11-27T06:47:20","modified_gmt":"2018-11-27T11:47:20","slug":"eurusd-bulls-disappointed-by-draghis-speech","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/11\/eurusd-bulls-disappointed-by-draghis-speech\/","title":{"rendered":"EURUSD: bulls disappointed by Draghi\u2019s speech"},"content":{"rendered":"<div id=\"inves-3787480487\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 27, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By <a href=\"https:\/\/alpari.com\/en\/analytics\/analysts\/anthony\/\">Matthew Anthony, Alpari<\/a><\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Monday the 26<sup>th<\/sup> of November, trading on the EURUSD pair closed down. In the first half of the day, the pair rose from 1.1340 to 1.1384. Support was provided to the euro by the drop in Italian 10-year bond yields to 3.170%, which occurred in response to the Italian government hinting that it may be willing to cut its deficit target for next year. The bulls erased all their gains before the day was out on the back of ECB President Mario Draghi\u2019s remarks. Draghi warned of an economic slowdown ahead, which prompted euro sell-offs and brought the rate against the dollar down from 1.1384 to 1.1326.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>14:00 UK: CBI distributive trades survey \u2013 realised (Nov).<\/li>\n<li>17:00 US: housing price index (Sep).<\/li>\n<li>19:00 Eurozone: ECB\u2019s Mersch speech.<\/li>\n<li>22:30 US: FOMC member Bostic speech, Fed\u2019s Evans speech, Fed\u2019s Quarles speech, Fed\u2019s George speech.<\/li>\n<li>23:00 New Zealand: RBNZ financial stability report.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/651_5bfcf697a9fe1.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart.<\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>My prediction of a rise for the euro was proven correct. The rate recovered to the LB balance line and 45<sup>th<\/sup> degree. The balance line acted as a resistance for buyers. After a second, unsuccessful attempt at breaking through, they closed their long positions. Then, on the back of Mario Draghi\u2019s speech, the euro retreated to 1.1326.<\/p><div id=\"inves-4254961556\" 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>The EURUSD pair is currently trading at 1.1340. In my forecast, I\u2019ve gone for a rise on the euro to the upper line of the channel and the 45<sup>th<\/sup> degree at 1.1378\/80. I\u2019m counting on a rebound here and a double bottom at around 1.1327, as well as the dollar declining against the majors.<\/p>\n<p>As of the latest quote, the rate has returned to 1.1328. The pair is trading in the middle of the blue downwards channel. This trade setup looks bad both for buying and selling. We can forget about a rise if the pair drops as far as 1.1313.<\/p>\n<p>There\u2019s an intermediate resistance at 1.1350 (22 degrees and LB). You could short the euro from here, but better to do it from 1.1370 or 1.1380. After this new session low, I\u2019d rather not open a long position on the euro given that sales could recommence at any moment following a rise. If there are a lot of stops at 1.1320, we should prepare for a drop to 1.1313, and then to 1.1273. I\u2019m not thinking about buying at all; better to take advantage of any rise to sell from a higher point.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: bulls disappointed by Draghi\u2019s speech<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Matthew Anthony, Alpari Previous: On Monday the 26th of November, trading on the EURUSD pair closed down. In the first half of the day, the pair rose from 1.1340 to 1.1384. Support was provided to the euro by the drop in Italian 10-year bond yields to 3.170%, which occurred in response to the Italian [&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-137943","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137943","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=137943"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137943\/revisions"}],"predecessor-version":[{"id":137944,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137943\/revisions\/137944"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=137943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=137943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=137943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}