Classic case of " Buy the News but Sell reality " on the EURUSD

EU migration deal happened and the EURUSD shot up 110 pips in Less than 2 hours . Migration among European nations is a political nightmare that EU politicians were dancing around as if it was a plague. Immigration affects a few things

- Economic growth
- Govt resources
- Changes population dynamics
- injects diversity of ideas in solving common problems

Can anyone explain why that would change the current economic growth forcast on EURUSD ?

-- Italy is basket case waiting to happen
-- EU economies growth have been slowing down for the last few months
-- US tariffs are Economic risks

Dollar index dropped from 95.32 to 94.86 and thats a very rapid drop for the DXY

EURUSD price is at 1.1660 , current Daily High at 1.1666 , Low at 1.1556

In my opinion , i think this is a case of " Buy the News but Sell reality " on the EURUSD

SELL:
Entry = 1.1660
Exit 1 = 1.1600
Exit 2 = 1.1580
Exit 3 = 1.1560

Any takers ?

Note

29/06/2018 at 11:58 pm EST

Frankly , i still don't see any short-term reasons for the EURUSD to be above 1.1660 -- 1.1695 at this point. I still think , We SHORT the Euro at this level. EU Migration deal can't make the EU Economic conditions somehow disappear overnight. You can't kick a dead horse expect somehow it will wake up and run the Kentucky Derby, Oh no.

There is no Negative short-term risk to USD (Dollar Index --DXY ) at this moment apart from EURO analysts trying to talk up the EURO.

If you look at the major Banks institutional forcast they are all over the map in the next 3 to 6 months. They can't even get a consensus on where the EURUSD is headed.

EU CPI = 2.0 % -- no improvement
EU CPI Core = 1.0% --Lower than last month figure of 1.1%

US Economy is performing much better than the EU economy.
EU Economy is slowing down

US PCE(YoY) = 2.0% ( The US FED look at this number closely )
US PCE (MoM) =0.4% --Improvement over last months figure of 0.2%

In the Long-Term (1 -2 years ) , USD has some Risks and Tariffs including a large Budget Deficit but in the next 3 to 6 months they are minimal.

So why would the EURUSD have such a rapid move simply because of a news that have no immediate Economic benefit apart political risk to politicians ? Hmmmm!!! Begs the Question

developeralgo222

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