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FxWirePro Call Review: Euro downside target revised to 1.095 against USD

In March this year, we have called on our readers to go short in the euro, at the then current rate of 1.218 against the USD with a target of 1.17 area. https://www.econotimes.com/FxWirePro-Call-Review-Euro-short-term-outlook-revised-from-bullish-to-bearish-targeting-117-1178120 and in follow up reviews, here https://www.econotimes.com/FxWirePro-Call-Review-Maintain-short-positions-in-EUR-USD-ahead-of-ECB-1275745  and here, https://www.econotimes.com/FxWirePro-Call-Review-Maintain-short-positions-in-EUR-USD-target-revised-lower-1315385 we have extended the target to 1.145 area.

As the troubles continue to cast clouds over Eurozone outlook, we would like to urge our readers to maintain short positions in the Euro. Here are some key troubles,

  • U.S. President Donald Trump’s trade challenge.
  • Additional demand for payments to NATO by the United States.
  • Italy’s clash with bureaucrats in Brussels over immigration and austerity after new populist leaders came to power in Italy.
  • Angela Merkel’s struggling attempt to maintain chancellorship amid the threat by coalition partner to quit or impose harsh immigration policy if she fails to find a common resolution to the problem.
  • Uncertainties surrounding Brexit.
  • Growth is slowing down, along with PMI numbers.
  • Both consumers and business confidence are crashing.

Looking at the above troubles and challenges, in this review, we would like to revise the downside target for the euro from 1.145 to 1.095 against the USD.

The euro is currently trading at 1.163 area against the USD. 

 

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