The EURO bears push prices lower as the USD is in demand

The EURO is edging its way lower on the Daily timeframe and we expect this trend to continue as money supply flows to the safety of the USD and for stock market yields. The US economy is doing a lot better than most so expect the interest rate benefit to be in holding US Dollars (the interest rate differential between the USD and other majors in a rate cutting cycle such as the AUD). The short term will see a continued contraction in volatility as traders go into Xmas and await further details of a potential trade deal. We want to see how price reacts to the 1.0890 zone to see if buyers can generate a move up for a short term play, otherwise shorts are still in play.

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