In this week’s The Chart of the Week, once again the euro is the focus and the downside is the ultimate trajectory for it as forecasted in the analysis.
The latest news to start the week rhymes with the technicals and quotes ECB policymaker Ignazio Visco saying on Sunday:
The euro’s recent strengthening is worrying us because it generates further downward pressures on prices at a time when inflation is already low,
Visco, Italy’s central bank governor, told an event in Trento, as reported by Reuters news.
The monetary policy implications are obvious: if the downward pressures jeopardise our price stability objective, we’ll have to intervene,
is a line that should give the bears some fuel in the pursuit of the support structures outlined in the technical analysis illustrated in The Chart of the Week.
If, however, opposite effects were to emerge, the measures we’ve already taken could suffice,
Visco added.
The euro has opened on the offer to a low of 1.1622 so far.
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The Chart of the Week: EUR/USD’s copy-book landing, still plenty of longs to unwind
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