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: http://www.tailopez.com/A3092184

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 tailopez.com/A3092184 is worth the wait.

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

Check Also

Why Did the Federal Reserve Injected $88.1 Billion, in the U.S. Economy, this Past Thursday?

The Fed regulates the supply of money in the financial system by utilizing several means, and the repo market happens to be, one of those means. The Federal Reserve, takes on the role of a lender when it adds money to the financial system, through the repo market. In the repo market, lenders can include money-market mutual funds, banks or hedge funds.

US Economy Experiencing Slow Growth Confirmed by Non-farm Payroll, Manufacturing, and Retail Sales Data

The Core Retail Sales Report measures changes in the total value of sales at the retail level in the U.S., excluding automobiles. The report shows the rate of consumer spending. It functions as a pace indicator for the U.S. economy, how fast or how slow the growth of the economy is currently progressing. As we can see in the report, the previous reading was 1.0%, the forecasted reading 0.1%, and the actual reading came in at 0.0%. So, this is confirming that U.S. economic growth has slowed down dramatically or is slowly growing.

Federal Reserve Struggling to Prevent US Economy from Slumping Like European Economy!

By Glenford S. Robinson The United States Federal Reserve recently took steps to jump-start the …

The Federal Reserve Cut Interest Rate by 25-Basis Points, Wednesday! But Why?

Is the Feds cutting rate because of pressures from President Trump? Or, is the Federal Reserve cutting rate as a result of uncertainties presented by the ongoing trade war between the U.S. and China?

Pre-recession Could be Current State of U.S. Economy, Emotionally!

Defining a recession as two consecutive quarters of negative GDP growth doesn’t tell the whole story of the effect human emotions has on the financial markets. Before there are any consecutive quarters of negative GDP growth, there is the impact of human emotions on the financial markets, which should be taken into consideration. So, by the time two quarters of consecutive GDP growth hits the headlines, investors’ emotions would’ve already nose-dived into depression, dragging down the economy with it. That scenario could be the vampire plaguing the current U.S. economy.

Fed Chairman Powell Signaled US Economy Could Be on Verge of Economic Collapse

Could the US economy be on the verge of an all-out economic collapse? Well, the urgency with which the Federal Reserve Chairman Jerome Powell has acted says exactly that. The Chairman hinted on Friday that the central bank would continue its rate cutting plans started last month (rate cut of 25-basis points).

US Treasury 30-Year Bond Yield Hits Record Low, Economy Heading for Recession?

The infamous inverted yield curve is used to forecast economic recession and it too has shown itself a few times recently, flip flopping its way into the hearts of paranoid investors. The take-away from this is that for a true economic recession to occur, the inverted yield curve must remain inverted for many months to qualify as a true predictor of economic recession.

%d bloggers like this: