There is a recent update by ECB chief Mr. Mario Draghi, 10 hours ago publish by CNBC that ECB is embarking on a tightening of monetary policy. so how will ECB tightening affect the Euro, there is only one way upside because they have end the unorthodox of money printing quantitative easing (QE) to increase money supply (M2) to depreciate its currency, by limiting the money supply (M2) Euro will strengthen couple with the backdrop of a weakening dollar where DXY is trading at its peak now. should high and unsustainable sovereign debt of Euro Bloc countries diminish with the prospect of global economy growth engine reigniting will drive Euro to new highs not seen year 2016 where it reach its low of 1.03 (est).
https://www.cnbc.com/2018/12/13/ecb-meeting-crisis-era-stimulus-set-to-end-despite-growth-worries.html?fbclid=IwAR1Cr95Mxpk3SzXjq9vYXQwcJK7g4nMkd78d7gbE3IuGreZR8RNe07rNYYs
EURUSD Monthly Chart
Recent EurUsd chart on 25 November suggest, a flag and pennant chart formation (huge bull flag) couple with price back test around 1.13 peak as support as illustrated by orange color line drawn. 2nd wave will be anticipated to rally to price target 1.34. 1.03 to 1.25 = 0.22 axis line plus recent low 1.12 = 1.34 (target).
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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