The Euro is slowly going down and this is not brought on by the Eurozone situation.  Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the “wait-and-see” stance regarding the interest rate hike. Let us remind you, that the market is counting on two rate hikes to happen in the year 2017. Rumours surrounding the possible rate hike in March is probably just false alarm.  But then again, the U.S. Dollar is rallying up so we are probably going to hear about its parity with the Euro soon.

The pair is currently located next to the descending channel from which it has previously pulled back from many times in a row. In this case, it can still pull back one more time and touch the level of 1.0465:


However, we can see the upcoming correction with the move: the descending channel is going to be broken and pull back to the middle point of the forming of the daily hammer, as well as, there is expected growth up to the 1.0670 level. This level is the place from where we should take short positions in the single currency:


Now, let’s take a closer look at WTI oil. “Black gold” is under the broken resistance level of 52.20 for many weeks in a row. At CFTC reports have stated, the large operators keep expanding long positions of this asset:


It is now wise to take a risk and buy the WTI oil at the current prices (53.75) hiding the stop order behind many weeks’ flat boundaries. We should aim to the level of 69.50. This range is like a compressed spring – the more one holds it, the stronger it shoots. The question is where to? We will try to bet on growth. To minimise losses, it is wise to buy Oil from the flat’s lower boundary – 52.00. It is a very risky thing to do, though!


Stay tuned for more and trade with Tickmill!

Share this post: