EUR/USD, Technical VS Mr.Draghi.
It’s obvious that Mr.Draghi is using all ‘weapons’ against the euro strengthening. Can he win this battle against strong tehnical levels only with talk? At my weekly chart You can see that the level 1.1400/50 is the ‘red zone’ and alert for him to act and he did each time. The bulls have tryed and succeeded to reach the uper line of the equidistant channel at August 24. but, strong selling has returned the euro down bellow red zone two days after. In the last two weeks, the euro was in position to brake that ‘red zone’ again, as I pointed in my previous analysis, but Mr.Draghi hold that with the QE extension story plan, especialy yesterday at the press conference when he anounced that possiblytie in December. The market players have take that promise too seriously and brake the euro down for more then 200 pips. So what if Mr.Draghi talk about that? For how months we have the empty promises from FED’s Yellen? For too many, right!? Well, you all know that, this is the fight between central banks mostly, with all possible available weapons. Mostly talk in 2015., but that ‘talk’ works fine. That’s why, keep watching at tehnical analysis and charts, this is all you need for good trading decisions. Let’s see whether Mr. Draghi can fight with strong technical levels only with his stories or he will have to intervene for real. These are strong weekly technical levels in my chart, be aware of that. Just wait for breakouts or support confirmations and happy trading.