MG Network

something big isHappening!

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

EUR/USD. Results of March 10. EU GDP accelerated by 1%. Panic continues to be present in the markets

4-hour timeframe

analytics5e6836cc0a1f4.jpg

Amplitude of the last 5 days (high-low): 119p - 92p - 125p - 143p - 156p.

Average volatility over the past 5 days: 127p (high).

The long-awaited correction began on the EUR/USD pair, but so far it is very weak and unstable. At the moment, the price has not even been able to work out the critical Kijun-sen line, which, by the way, is not so far from it. Thus, a strong upward trend persists, and at any moment, traders can again begin to move the pair up. The panic mood of the market is fully preserved, which is perfectly visible by the volatility indicators, which have been breaking all records in the last ten days. Thus, the market is still very dangerous for opening any positions, since within a few hours the pair can go 100-150 points in any direction. Most importantly, it is very difficult to predict the movement of the euro/dollar pair, as it does not react to macroeconomic statistics. An emergency speech by US President Donald Trump was held tonight, in which he announced negotiations with Congress and the Senate to lower America's payroll tax as part of the fight against coronavirus. Many traders and experts considered this a bear factor. However, we believe that a downward correction has begun. That is, the quotes reduction factors on Tuesday, March 10, are exclusively technical. Firstly, Trump has not yet reduced taxes, so market participants had nothing to respond to. Secondly, during the last 7-8 trading days there were news and messages much more important than this, and all of them were ignored.

Meanwhile, the fourth quarter GDP indicator was published in the European Union. The increase was 1% in annual terms. This is very small, but more than experts predicted (+ 0.9%). The increase was + 0.1% in quarterly terms. As you might guess, this publication was also left without market attention.

At the same time, most traders are looking forward to further actions by the ECB and the Fed. We have already said that the emergency rate cut looks, to say the least, strange. Yes, the coronavirus continues to spread and slow down the world economy. However, the problem of the epidemic must be solved first of all by medical methods. It is clear that the US central bank decided to play it safe and stimulate the economy in advance, when there were no signs of its slowdown. All recent macroeconomic reports were at a fairly high level. The Fed does not want to allow a repeat of 2008, so it plays "ahead of the curve". At the same time, the more the Fed lowers the rate now, the less room for maneuver it will have in the future. Coronavirus is a dangerous phenomenon for the entire planet and its economy, but it is not the only potential threat. In recent years, there have been many events in the world that have successfully slowed down the economy, but there have been few events that would have stimulated it. It is only worth recalling that GDP and industrial production in the United States have been declining in the past year and a half, even without the coronavirus. The situation is no better in the eurozone, which "distinguished itself" by exactly the same reductions in GDP and industrial production. In addition, global growth rates have been affected by trade wars, mainly between China and the United States. What if new cataclysms occur in the next few years? What measures will the Fed take then? We believe that the actions to reduce the rate in the US is clearly traced to Trump's figure. As analysts, it is difficult for us to judge what is happening in the highest government circles. It is obvious that we do not have all the necessary information to make such conclusions. However, if you simply compare Trump's fierce desire to bring rates to zero and the coronavirus factor, which allows you to legally lower them to the required levels, then some questions arise. For example, isn't the coronavirus a simple excuse? Why not direct all your efforts and financial flows to fight this virus? However, instead of regularly reporting on medical advances in the fight against the virus and new investments in the health sector, Trump declares that the virus will not survive the warm season, then that Americans have nothing to worry about. Now, when the number of cases is growing in the United States, Trump has come under a barrage of criticism for spreading false information. However, he is no stranger to being criticized.

Soon, one can expect statements in the style: "the coronavirus is not fair in relation to the United States." Former US coordinator for countering the Ebola virus, Ron Klein, believes the president is misleading American citizens and says obviously false things. According to Klein, the US president is fixated on the "prosperity of America" and carefully denies any problems in the country. That is, Trump's policy is to constantly say how everything is good in America, and that this, of course, is his merit. Such rhetoric is absolutely logical in the run-up to the 2020 elections. It is possible that Trump will also win the coronavirus. Also, according to Klein, there may be many more infected in the United States . Only such a small number of infected people are reported because most states do not conduct any infection tests at all . Accordingly, there is simply no data from many states . Many experts also agree with Klein. "A vaccine in two to three months is absurd," they say.

Recommendations for short positions:

For selling the euro, we recommend waiting for quotes to consolidate below the critical line. And this is the condition for shorts with the lowest volumes while aiming for a support level of 1.1090.

Recommendations for long positions:

Euro currency purchases with the target resistance level of 1.1549 can be opened in case of a price rebound from the Kijun-sen line. In any case, it is recommended that you to be as careful as possible with the opening of any positions.

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen is the red line.

Kijun-sen is the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dashed line.

Chikou Span - green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and bar graph with white bars in the indicators window.

Support / Resistance Classic Levels:

Red and gray dashed lines with price symbols.

Pivot Level:

Yellow solid line.

Volatility Support / Resistance Levels:

Gray dotted lines without price designations.

Possible price movements:

Red and green arrows.

The material has been provided by InstaForex Company - www.instaforex.com