Further EURO gains expected

9 Eki 2020

Following DXY weakness and observing price action 📈📉 across major asset classes around the world, I'm repositioning myself for further bullish sentiment. However, I'll be careful as it is clear that this October truly is a surprising one with US politics and ECB sentiment being a big concern for me.

• An election year in the US sees major gains across equity markets. On the other hand, this is an election like no other. Expect volatility until the elections are over.
  
  
• The ECB says that EURO gains have offset its monetary stimulus and the ECB might decide to do something about it.
  
  
• Spain is overtaking Italy as Europe's problem child. Record debt and a surging second wave of covid19 are major issues. The economy has had a hard time recovering from the impact of lockdowns and Madrid now has a state of emergency. This does not look good for the equity markets.
  
  
• The CFTC COT WEEKLY Data shows that the banks are still bullish on the EURO with 188k+ net positions and that could explain gains this week. Tonight I'll be waiting for the new report. If more long positions are opened, it will confirm my Positional sentiment .
  
  I'm confident that the 1.25xx target 🎯 by experts could be reached if the ECB ignores the gains. However, the probability of no intervention is unknown as the ECB has repeatedly rejected the idea this year.
  
  If you agree with the idea, like 👍🏿 or leave a comment below.

13 Eki 2020

Not

The retracement is as expected. Now price is in a decision zone. A further drop beyond 0.382 will invalidate the idea