EU - Potential short entry -
All the Brexit things caused some big uncertainty in the EU. Other country may follow the example with a referendum. Since there worst thing for a market is uncertainty this should create some nice downside pressure.
On top the ECB is getting more and more desperate pumping cheap money into the market to weaken the Euro even more aggressive. The effects of it will likely cause a lot of volatility but I remain sceptical of the success of further easing desperation moves in the end of the day.
This short entry would give us a good risk reward ratio. But a weak dollar is also possible which would make the Euro rally really hard coming to the end of the week, especially with the upcoming NFP data. Also the SSI shows retail traders are net short EU which would favor a topside target for now. But for a long play it's too late to get a good risk reward ratio at this point.
All the Brexit things caused some big uncertainty in the EU. Other country may follow the example with a referendum. Since there worst thing for a market is uncertainty this should create some nice downside pressure.
On top the ECB is getting more and more desperate pumping cheap money into the market to weaken the Euro even more aggressive. The effects of it will likely cause a lot of volatility but I remain sceptical of the success of further easing desperation moves in the end of the day.
This short entry would give us a good risk reward ratio. But a weak dollar is also possible which would make the Euro rally really hard coming to the end of the week, especially with the upcoming NFP data. Also the SSI shows retail traders are net short EU which would favor a topside target for now. But for a long play it's too late to get a good risk reward ratio at this point.