EURUSD: bears hit fresh weekly lows

On Wednesday the 6th of November, trading on the euro closed slightly down at -0.07%. Following a rise to 1.1093, the bear hit fresh weekly lows in the Asian session. The effects of European data were short-lived. In the US session, the pair returned to 1.1065. There’s not much to say about what happened yesterday; better to get straight to analyzing our main pair.

Day’s news (GMT+3)

• 12:00 Eurozone: economic bulletin.
• 13:00 Eurozone: European Commission releases economic growth forecasts.
• 15:00 UK: BoE interest rate decision, BoE asset purchase facility, BoE quarterly inflation report.
• 15:30 UK: BoE’s Governor Carney speech.
• 16:30 US: initial jobless claims (1 Nov).

Current situation

In today’s Asian session, the majors are trading down against the US dollar except for the safe havens. The yuan is falling, while the yen and gold are rising. Demand for the safe havens is rising amid speculation over renewed disputes between Washington and Beijing. China is seeking to have the 15% import tariffs imposed in September abolished. The US wants to conclude a deal without overturning previously imposed tariffs.

Yesterday’s target was missed. Today we expect a drop to 1.1043. The bears hit a new low in the Asian session, shifting the weekly low from 1.1064 to 1.1055. 1.1-43 is the minimum target for the double top model on the H8 timeframe. The question is via which model will this target be reached? Yesterday we wrote that we need to hit fresh lows before getting an upwards correction. This condition has now been fulfilled. Ideally, this correction should take place from the 112th degree.