TIMEFRAME : 1D
BIAS : BEARISH
After EURUSD made new highs in November 2017, we’ve seen a huge decline back 1.1800 area. On he 9th of this month the euro tried to back at push back up at 1.18500 demand level but failed to break the psychological resistance/ supply zone at 1.200 area. Currently after weeks of dropping the euro is approaching another demand zone where we can see a slight retracment back at to 1.1850-1.1900
Last ECB meeting Mario Draghi, the president, made a statement that shocked investors and brought everyone back to reality. He said ECB was nowhere near rising rates because they see no inflation ahead and growth expectations are far from the USA oerformance. This is why we had a free fall since 1.2485. First short term traders sold, now is long term portfolios adjusting. But still has to drop more as still in MARCH 2018 the currency options market had reached all time highs of EUR CALL long option contracts (when we were at 1.0400 the same option exchange was at TOP levels of PUT options on EURO. This market is a good indicator for reversal you might ague to 1.1500-1.1400 area. The first record high was hit in November 2017 and continued till March 2018.