EUR/USD: Movement by fundamental analysis!!!Fundamental Analysis:
***1) Germany, Europe's largest economy, is still on course for a recession even with a new government plan to spend 65 billion euros ($64.49 billion) on shielding energy customers and businesses from soaring inflation, economists say.
2) The latest package brings to 95 billion euros the amount allocated to inflation-busting since the Ukraine war began in February. By contrast, the government spent 300 billion euros on propping up the economy over the two years of the pandemic.
3) European gas prices surged, stocks slid and the euro sank on Monday after Russia halted gas flows via a major pipeline, sending another shock wave through economies in the region still struggling to recover from the pandemic.
4) European Union governments are pushing through multi-billion euro packages to prevent utilities buckling under a liquidity squeeze and to protect households from soaring energy bills.
5) Europe has accused Russia of weaponising energy supplies in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine. Russia blames those sanctions for causing the gas supply problems, which were down to a pipeline fault
6) European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.
7) European gas prices jumped as much as 30% as the market opened, and Germany announced on Sunday around $65 billion of support to help protect Germans from rising costs.
8) Finland and Sweden also announced plans to offer liquidity guarantees to power companies. Finland's economic affairs minister warned of the possibility of "kind of a Lehman Brothers" in the energy industry, referring to the 2008 collapse.
9) The euro zone is almost certainly entering a recession, with surveys on Monday showing a deepening cost of living crisis and a gloomy outlook that is keeping consumers wary of spending.
10) Germany's services sector contracted for a second month running in August as domestic demand came under pressure from soaring inflation and faltering confidence, a survey showed on Monday.
11) Euro zone business activity contracted for a second month in August as demand sank, with customers wary of the deepening cost of living crisis and gloomy economic outlook curtailing their purchases, a survey showed.
***12) The European Central Bank meets later this week, and is widely expected to raise interest rates given inflation is rapidly approaching double digits in the Eurozone and the policymakers have become worried about high prices becoming firmly entrenched.
13) The euro sank below $0.99 to a new 20-year low on Monday after Russia's halt to gas supplies down its main pipeline to Europe heightened fears about a deepening energy crisis across the region.
14) ECB officials will be keen to see the euro, which has lost around 8% of its value in the past three months, stabilise. That will feed into the desire to try to tame inflation through tightening policy.
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So guys, what I found out it's that Germany Government make an investment of 65 billion (Euros) on shielding energy customers and businesses from soaring inflation and $95 billion (Euros) the amount allocated to inflation busting since the Ukraine began in February 2022. Another data show that Germany has spent over 300 billion (Euros) on propping up the economy over the past 2 years of the covid-19 pandemic.
Now, European Union are pushing through the Multi-Billion plan packages to rescue and prevent utilities buckling under a liquidity squeeze and to protect household from soaring energy bills.
At this point, we see a bullish side for Euro currency in this fundamental analysis what Germany (The largest economy in whole Europe) do and European Union to rescue the countries they to one shield energy customer and businesses from this inflation in the energy crisis.
But in other hand, we see a bearish fundamental that EUROPE has accused to Russia of weaponing energy supplies in retaliation for western sanction imputed on Moscow, over its invasion of Ukraince, Russia blames those sanctions for causing the gas supply problems in whole Europe.
***European Central Bank will make a meeting about interest rate decision in this week on this Thursday and expect to raise 1.00%.
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Now, talking about technical analysis, I'm bullish in based the bullish side that appear very optimistic for Euro currency.
Now, we're in this bearish channel, and we formed a bullish divergence in the RSI and price action too. What we could to expect a possible long position from this side, what we can't to trade until we see a smart point to buy in $0.9920 USD or the break-out of this bearish channel, what it's better to be disciplined and patience until this trade develop, but has a bullish side.
So guys, at the moment, I don't see a trade yet until hope our best buy zone.
I hope that this perspective have your idea to long in Euro at favor by fundamental analysis.
So, we know that Europe it's in the recession, but today it's appear good bullish side that we could to see in the Europe largest economy that it's Germany and European Union. And also on Thursday the European Central Bank will make an interest rates decision and expect to raise 1% in this week.
So guys, in this week, there're a lot to read in United Kingdom that we have a new Prime Minister that I'm very interesting to analyze some Sterling Pound and know my perspective why I' see a dark future in it.
I will keep update this par!!!
