Merkel Wait, What Are You Doing?
Skerdian Meta • 1 min read
There you go, the Germans open their lousy mouths and the Euro takes off. EUR/USD surged 70 pips higher in the last couple of hours, breaking above last week´s high. The Eurozone economy doesn´t need this right now, Europe doesn´t need this and we certainly don´t need this either, since we have a long-term sell forex signal here.
Angela Merkel spoke in the Bundestag a while ago and she said what all the Germans have been saying forever, that the Euro is too damn low/weak.
That´s all the input the algorithms needed and the Euro pairs surged 70 pips higher. It´s nothing exceptional really. The Germans have been condemning the weak Euro for ages, because of hyperinflation risks, which will never materialize. But, that´s the Germans.
The Euro is tooooo damn low, according to Merkel
We are used to this sort of rhetoric from the Germans, but the market is nonetheless surpised, on the other hand, doesn´t like EUR/USD around these levels. Mario Draghi is giving a speech later this week, so there is a chance that the Euro will move lower in the coming days, either because of the anticipation leading to the speech or because Draghi is likely to talk it down.
That´s a ray of hope for our long-term forex signal here. However, the forex market is too stubborn, so we have to watch the price action closely and play with stop loss for a while until Draghi comes.