EUR/USD Death Cross - What's say the statistic and what to expect in next days

The bearish trend in EUR is not over yet, and negative moods may be tightening. It all depends on how the FED reacts at its next meeting, while the end of QE by the ECB is increasingly discussed among central bankers. traders and investors. While the sound of the crisis in Italy is dying, and the end of QE is becoming more and more relevant, many traders do not pay attention to the big picture as far as technical analysis is concerned. Looking at the daily chart, 50 and 200SMA formed the so-called "Death Cross" for the first time in two years. Statistics show that after the appearance of the formation, the price tends to test the period, and then drop sharply. If we also look at the fundamental point of view, the end of the crisis in Italy and the announcement of the QE termination date will have a positive impact on the euro, but the positive foundation is exhausted and hence the likelihood of growth. I expect a 200-year test, after which the US news and the Fed's policy move the couple.

Source: Bloomberg Pro Terminal

Read more:

• EUR/TRY at key level, what are the prospects?
• EUR take support after good consumer and IFO business confidence
• EUR/USD – Why the “strong” support zone will be fall
• EUR/CAD – Good levels to build mid-term short position
• ING Bank: We do not expect deep EUR/USD correction