On Tuesday the 14th of August, trading on the euro closed down. After a correction to 1.1429 during US trading, the EURUSD pair dropped to 1.1320. The euro lost ground against the dollar despite the fact that the Turkish lira has stabilised. The lira gained 11% against the dollar.
Traders shorted the euro on the back of the uncertainty over Turkey’s situation and how it will affect the financial solvency of a few European banks as well as the US dollar rising across the board.
Day’s news (GMT+3):
Fig 1. EURUSD hourly chart. Source: TradingView.
My predictions for yesterday came off in full. The rate dropped from the balance line past the 67th degree to reach 1.1330.
The formation is complete on the hourly timeframe. I haven’t been able to choose a scenario today because the pair has reached a support on the daily timeframe and the 112th degree, which is sitting below it at 1.1301, is a potential reversal level. Moreover, in today’s Asian session, all the majors are trading down. The picture on the euro crosses is mixed. Some pairs are trading up and others down.
I can only tell you my thoughts on what’s happening today: