The euro commands the beneficiary of the unexpected trade sale of risk assets, as the FX analyst Chris Turner notes.
EUR/USD faces the huge resistance of the trend in the area of ​​1.11-1.12
“Usually EUR/JPY has a strong positive correlation with risk assets, while this week the euro maintains its own. It has nothing to do with a positive re -assessment of the prospects of the euro zone growth. No, the messages are terrible and can get worse if trading officials in the EU – meeting on Monday in Luxembourg – decide on retaliation in the zone.”
“Remember that in fact only EU and China commercial blocks that have an economic muscles will take revenge.
“In the case of EUR/USD, there is a huge resistance of the trend in the area of ​​1.11-1.12-what means the tendency of the bear from a height of 1.60 in 2008. We will probably have to see another huge traffic in American actions to remove this area nearby. However, we suspect that the buyers will appear in 1.1020.
