Market Watch – EURUSD Forecast 7-12th September 2014

During the summer months trading the euro was not too complicated. Because a dovish ECB was widely expected traders shorted euro for quite some time. Last week they were proved right and the ECB decided to cut rates into even deeper negative territory. But markets are forward looking so the question now is what’s next?Since june the euro lost more than 1000 pips against the dollar without really having any significant correction, this is symptom of an oversold condition. Considering the need of a correction from the dollar side as well (Dollar forecast here) next week we could see a short healthy pull back in the euro.

Chart

But, this does not mean I am getting bullish on the euro, on the contrary I would suggest to wait for a pull back to start fresh shorts from a more convenient position.

Further details and suggestions can be viewed in my latest video:

Good luck trading!!!

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