The Euro glass looks a lot more half empty than half full all of a sudden
Over the German elections I tightened the EURJPY long plan , I did put the stop at 133.30 , to guarantee decent profit on this trade and as the pair didn’t make it over the 134.40
on a few attempts, making it a very decent resistance. the plan has been taken out this morning.
Despite Japan’s Abe call for snap elections, poor fiscal plans, an extra 2tln JPY demand for a fresh stimulus package, the weight of the Euro has been bigger than the expected sluggish JPY. Merkel’s victory tastes very sour. She lost a lot of votes to AFD;CSU is calling a vote regarding their CDU ties; she will have problems forming a government in due time with a fragile tripartite coalition and IFO’s analysts could see another election coming up, not good. To top it all up the IFO data came in weaker than expected this morning. When Europe’s engine sputters ….
The Franco-German cooperation to “make Europe great again” gets a dent .
I went short EURUSD this morning,in line with colleague Dubsly’s view, will add through 1.1875 and 1.1850 for move that could take us down to 1.1708(top of the Ichimoku cloud)or 1.1684(23.6 fibo of the whole move higher ).It may take a while to develop as EURO longs have a few support levels, which held in the past weeks, to rely on, before abandoning the race.