Economic growth in EU may slow down, what follow for EUR/USD

EUR USD Long idea



It seems that the eurozone economy is not performing as well as the central bankers want. Earlier today, Mario Draghi, ECB president said, the decline in the eurozone economy may be higher than expected, and this in turn slow down the rise in inflation.

Draggy's comments show that the ECB remains confident of the future inflation growth, backing market expectations for the final closure of the program for quantitative easing. How does this affect the EUR but where to look for profit?

Technical view of EUR/USD

The ECB comments seem to have managed to raise the euro, but not enough to keep EUR/USD on the rise despite the formation of the Double Top. Technically, the pair remains in a rising trend while the price is in the middle of the channel and only close to 50SMA. Delayed eurozone growth and a stabilizing dollar are likely to help the pair test the strong support zone in the range between 1.2050 - 1.2120, where we can look for an appropriate positioning signal with long positions. Demarker is entering an over-sales area, but it does not indicate an end to the decline. We remain awaiting activation of the Double Top formation and reaching the support zone. Entry from current levels will be extremely risky due to lack of good Price Action and positioning levels.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

 Varchev Traders

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy