Interesting this happening with the EUR. Seems like a long term uptrend breakdown

Discussion in 'Trading' started by tsfx, Dec 1, 2023.

  1. tsfx

    tsfx

    Here's a chart of % change of EUR against all the majors except the USD. It seems that it has finally broken out of its long term uptrend.

    EURtotal.png
     
  2. SunTrader

    SunTrader

    And against the Dollar not looking so good either (think I posted this resistance zone in another FX topic previously?)
    ! EU Daily.png
     
  3. tsfx

    tsfx

    I'm not a fan of USD either so i don't really know the direction of EURUSD. Only systematic trading with algos in this pair for me. I do see a little lower for USDJPY still so technically that can lift EURUSD for some time. We'll see. Not a strong conviction.
     
  4. Specterx

    Specterx

    From the 30,000ft view, Europe's economy looks set to remain structurally weaker than the US for the foreseeable future. The green stuff is a drag, they have no answer to the US gigacap tech champions, demographics are terrible and the bloc is getting gradually Africanized while the US sucks in high-caste Indians and Chinese and things, many countries have extremely poor climates for business & innovation. Confronting Russia for the foreseeable future will be expensive and distracting.

    I see no reason why the EUR shouldn't steadily sink vs the USD, over the coming years and decades.
     
    MarkBrown and SunTrader like this.
  5. SunTrader

    SunTrader

    Agree. We are going green, somewhat, but frack, frack, fracking in the meantime. :thumbsup:

    Keeps the wheels turning and input costs down.

    Amazing how a "senile, socialist" Prez is currently behind that.
     
  6. tsfx

    tsfx

    Interesting. I believe usd will decline in the coming year(s). Imo, fx values have pretty much nothing to do with fundamentals and everything circles around the usd given how many assets are denominated in it. Wd'll see. Let's talk in a year.
     
  7. SunTrader

    SunTrader

    Other than spike up in late April 10 year Bund has been losing out to 10 year Bond:-

    10Bund v 10Bond.png
     
  8. tsfx

    tsfx

    Just to give an example, in 2018, yield difference favoured usd more than it does now and eurusd traded 1.2+

    Yield diffs aren't that accurate in predicting fx values
     
  9. tsfx

    tsfx

    As we're predicting, i'm going with 1.22+ (eurusd) before a new low (0.95). Price sits pretty much in the middle right now.

    You?
     
  10. SunTrader

    SunTrader

    My time horizon is hours to a day or two in future. As for that, I think a move higher Sun eve/Monday day session to 1.0950 area before a pullback. Who knows really, chits and giggles predicting.

    Anyway my interest in DXY and FX pairs is strictly how it affects index futs, and secondarily CL and GC.
     
    #10     Dec 1, 2023
    tsfx likes this.