page contents

US Interest Rate Cut Sentiment Keeping EUR/USD Above 1.1200

By Glenford S Robinson

US interest rate cut sentiment is the nugget that is keeping the EUR/USD above 1.1200. If it wasn’t for the prospect of an interest rate cut of about 25-basis points coming July 31, 2019, the pair would’ve easily been rambling between the 1.1000 – 1.1165 range. Therefore, when the interest rate cut comes to past July 31, 2019, the pair could very well set up shop at levels below 1.1200. The lowest level the pair has been in the last two to three weeks is 1.1181, recorded on June 18. We call this area “true support” because it is characterized by an upward slope starting at the bearish candle seen on the Daily chart on June 18.

If a trend line is drawn from the bottom of the June 18th bearish candle on the daily chart and tracing down to the bottom of the July 19th bearish candle, an upward slope can be seen. A triangle formation is visible when a trendline is drawn from the top of the June 25th bearish candle to the top of the July 19th bearish candle. After noticing that a bearish down trend was the trend leading into the triangle formation, some Technical Analysis traders may interpret the triangle formation as a signal for a breakdown to the downside.

Such a downside break could occur on Thursday, July 25, 2019 when the (European Central Bank) ECB is expected to maintain the Eurozone’s interest rate at 0%. It might be a little premature for the ECB to cut interest to anything less than 0%. However, anything is possible when it comes to monetary policy making. So, an interest rate cut lower wouldn’t be a surprise because it is coming at some point in the future.

If our prediction holds true, we can expect that the 1.1200 area of support could quickly become an area of resistance all day Thursday, July 25; and may give way Friday a t 8:30 am when US Q2 GDP is expected to come in lower than previous readings.

Going forward, Forex Traders should expect an increase level of volatility for the EUR/USD currency pair. Where there is volatility, there is potential for large profits or large losses. So, caution should be exercised when trading these volatile markets.

Disclaimer: Trading the Forex market is a very high-risk endeavor. It is recommended that amateur Forex Traders get professional advice from a certified investment advisor before trading these Forex Markets because it is possible to lose all funds deposited in a forex trading account. The information presented in this article should not be taken as professional advice because Mstardom Finance and its subsidiary Mstardom, Inc., and writers do not provide investment advice.

A Word From Our Sponsor

5 Minute Millionaire Money Mentor

A. Ever heard of Tai Lopez?

B. He’s looking to personally mentor a small group of people to become ‘black belts’ with money.

C. Check out his video:

Wait! Wait! Free Bonus, Free Bonus: Don’t Open the link Yet.

First go to Youtube and Listen to the book called “Think and Grow Rich by Napoleon Hill.”

The book is free to listen to on Youtube. After you listen to some of the material in the book,

then you will be ready to learn how to make money with Tai Lopez’s 5 Minute Millionaire Money Mentorship program.

All my close friends, family, and professional colleagues are saying that the video at is worth the wait.

If I were you, I would read the book first. Your call! fffffffffffff

Check Also

US Federal Rate cut has come and gone, Now What?

The price of gold has certainly benefitted from the US-China trade war, hitting a six-year high of $1,510. When there are uncertainties in the US dollar and global economy, investors look for safe-haven asset classes to stash their cash. Gold is one of those safe-haven asset classes that investors turn to during times of trouble. In addition, the price of gold is inversely proportional to the price of the US dollar. This means that whenever the price of gold goes up, the price and value of the US dollar goes down. So, as currency traders who trade the USD against other currencies, we should all understand the relationship between the USD and AUX (Gold).

US Retail Sales Rose, But Building Permits Fall; Fed Rate Cut Decision Pending

The monthly building permit report is watched closely by traders, investors, economists, and by the Federal Reserve. Because all related factors associated with the construction of a building are very important economic activities (for example, financing and employment), the building permit report can give major hints as to the current state of the economy in the not-so-distant future. So, the fact that the latest building permit numbers came in well below estimates, there is cause for concern and the Feds may very will cut interest rate to jump start the economy by putting a cap on the progress of deflation.

US Inflation Rate Fell from 1.8% to 1.6% Giving Strong Indication of a Fed Rate Cut in July

With a strong US dollar, the stock market suffers. This was also one of the reasons why President Donald Trump lashed out at the Feds claiming that the agency was not doing enough to stimulate the economy, condemning the agency for hiking interest rates two times this year, thus stifling the efforts of the US President to stimulate the economy when he championed the passing of legislation which allows huge tax breaks to companies.

US Inflation Rate Drops Fueling Speculation of a Fed Rate Cut

A Fed rate cut of about 25-basis points is more in-line with the hints the Fed Chair was signaling.

US Fed Rate Cut Sentiment Thwarted, Euro Free Falling

The ECB is hell bent on keeping the value of the Euro as low as possible in order to compete with Trump’s USD for bottom-dwelling supremacy. Going forward, an interest rate decision either by the ECB or the FOMC in the not so distant future favoring the Euro could cause a rapid rise of the currency pair back up toward the 1.1400 level.

Euro Image

EUR-USD Bullish on US-China Raging Trade War

The Mstardom Finance trading group is predicting that the next short-term target for the EUR/USD currency pair is 1.1305. The pair has met support at the 1.1253 area and resistance at the 1.1263 area. This price action is inline with our calculated and predicted price movements. If our bullish prediction doesn't hold, then a pullback to the 1.1216 area is expected.

communication via hand phone

Global Clinical Alarm Management Market to 2023 with Koninklijke Philips, Vocera, Ascom, Spok, Bernoulli, Connexall, Mobile Heartbeat, GE Healthcare, Capsule Technologie & Masimo Dominating

In 2018, North America is expected to account for the largest share of the global clinical alarm management market. The large share of this region can be attributed to the increasing cases of alarm fatigue and initiatives by government bodies to curtail the effects of alarm fatigue and the increasing need for integrated healthcare IT systems to ensure reliability, efficient maintenance of data, data integrity, and timely availability of patient data to authorized healthcare professionals.

%d bloggers like this: