{"id":144507,"date":"2019-03-27T07:20:22","date_gmt":"2019-03-27T11:20:22","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144507"},"modified":"2019-03-27T06:48:16","modified_gmt":"2019-03-27T10:48:16","slug":"eurusd-shorting-the-euro-crosses-has-weighed-down-on-the-main-pair","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/eurusd-shorting-the-euro-crosses-has-weighed-down-on-the-main-pair\/","title":{"rendered":"EURUSD: shorting the euro crosses has weighed down on the main pair"},"content":{"rendered":"<div id=\"inves-3135771880\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 27, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Matthew Anthony, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Tuesday the 26<sup>th<\/sup> of March, the euro hit a new weekly low after an unsuccessful attempt at breaking the trend line. During the European session, the pair\u2019s drop was brought about by a decline on the EURGBP cross as a result of news concerning Brexit. Pressure increased during the US session on the back of increased demand for the dollar. The greenback also got a boost from a rise in US 10-year bond yields.<\/p>\n<p>I\u2019ve long been under the impression that the statements of various officials are carefully planned to bring about price fluctuations on the markets at a certain time. While they may seem random from the sidelines, randomness is just a pattern you haven\u2019t yet recognised.<\/p>\n<p>Any official can give their personal opinion on a hot topic and have a marked influence on the market. They don\u2019t face any consequences for this verbal manipulation of the market as they are simply expressing an opinion. Nevertheless, these expressions destabilise markets.<\/p>\n<p>The EURUSD pair is trading down on the 21<sup>st<\/sup> of March, while the GBPUSD pair is trading up. The trajectories of these pairs have diverged, but we can expect them to converge again in the near future.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p><div id=\"inves-542730493\" 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<ul class=\"list list_type_disc\">\n<li>10:45 France: consumer confidence (Mar).<\/li>\n<li>11:00 Eurozone: ECB President Draghi\u2019s speech.<\/li>\n<li>12:00 Switzerland: ZEW survey \u2013 expectations (Mar).<\/li>\n<li>14:00 UK: CBI distributed trades survey (Mar).<\/li>\n<li>15:30 Canada: imports (Jan), exports (Jan), international merchandise trade (Jan).<\/li>\n<li>15:30 US: trade balance (Jan).<\/li>\n<li>16:30 Eurozone: ECB\u2019s Mersch speech.<\/li>\n<li>17:00 Switzerland: SNB quarterly bulletin.<\/li>\n<li>17:30 US: EIA crude oil stocks change (22 Mar).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/storage\/inline-images\/eur_270319_0.png\" alt=\"EURUSD H1\" data-align=\"center\" data-entity-type=\"file\" data-entity-uuid=\"f336b28c-8d6f-4c89-8654-f8c8aaf2918b\" \/><\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>The pair fulfilled one third of my forecast yesterday. The breakout of the trend line turned out to be false. My predicted scenario became unworkable after the rate dropped below 1.1300. The euro bears improved their positions on the back of a strengthened dollar as they pushed the bulls back to 1.1251 (70% of the upwards movement from 1.1176 to 1.1448). Judging by trading volumes, this is a key support level. If the bears take it during the European session, I don\u2019t think that the 67<sup>th<\/sup> degree will be able to withstand them and the pair will slump to 1.1222.<\/p>\n<p>I wrote above that the highly correlated EURUSD and GBPUSD pairs have diverged. Now it\u2019s time to find a balance point between them so that they can start moving in the same direction again. Either the pound will drop, and the euro will stay at 1.1257 and wait for the pound to catch up, or the euro will shoot upwards and the pound will keep trading at 1.3180.<\/p>\n<p>I\u2019ve decided not to make a prediction today pending further developments on Brexit and given the upcoming trade talks between the US and China (a new round of talks is set to take place on the 28<sup>th<\/sup> and 29<sup>th<\/sup> of March in China). I\u2019ll simply state my target levels: 1.1220 (target for bears), and 1.1293 (target for bulls; the LB and trend lines).<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: shorting the euro crosses has weighed down on the main pair<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Matthew Anthony, Alpari Previous: On Tuesday the 26th of March, the euro hit a new weekly low after an unsuccessful attempt at breaking the trend line. During the European session, the pair\u2019s drop was brought about by a decline on the EURGBP cross as a result of news concerning Brexit. Pressure increased during the [&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-144507","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144507","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=144507"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144507\/revisions"}],"predecessor-version":[{"id":144508,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144507\/revisions\/144508"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}