This is my Euro
-0.03% forecast. The picture is very clear about the Bat Pattern
I had found. Why the retrace? For tomorrow I dont expect any changes in ECB monetary policy
, and also think they will be talking more about external risks for the EU recovery due to political tensions. Anyway, data is still showing at least for me a good recovery when you take a look to the GDP, sentiment, and the price consumer index this monetary policy
is about. Employment is still stagnated, but that will be something structural hard to be resolved in the medium term. Also expect for next week a hawkish tone in the Fed policy measures or maybe a surprise with another interest rate increase, or at least signiling it.
But you know, the later is only a guess. Lets go for the tech analysis ...... the one that really works. If you take a look to the chart, the blue gross line is showing us the superior resistance line inside a trend that started at least september 2016 or even early 2015. So, if this one is broken upside expect 1.13, flag, and then impulse, and that is another history. But if this one works as I think it will, our EP is below 111.600, SL 12.300, TP1 109.800, and TP2 108.000. Dont be shy, and take your profits 1 by 1.
Take a look to the DXY
0.05% and the XAUUSD
-0.01% forecast, and both are signaling the same trend correction.