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Josesv
Topic Author
Posts: 13
Joined: November 3rd, 2017, 12:40 am

What happens to the Euro?

November 24th, 2017, 4:39 am

On Wednesday the 22nd of November, trading on the euro/dollar closed up by 81 pips at 1.18. This sharp increase was brought about by the decline in the dollar and US 10Y bond yields resulting from the publication of weak durable goods data and the FOMC minutes.
Durable goods orders fell after three months of growth. US 10Y bond yields dropped from 2.376% to 2.340%.
As today is the 4th Thursday in November, the US is celebrating Thanksgiving Day. American exchanges are closed today and will close early on Friday. Volumes are thin on the market, so from our current price of 1.1829, we could move up to 50 pips in either direction. 
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Considering that traders are buying euros on the crosses and that markets are paying less attention to the German coalition talks, I’m predicting a test of the 112th degree followed by a rebound towards the lower boundary of the B-B channel. When the crosses are rising, buyers don’t give up so easily.

If markets do decide to pay attention to Germany, how a real time forex signals, I’d like to see the price return to the LB balance line, which currently runs through 1.1763.