EUR/USD Sell Strategy, Italy Rating Announcement! ~Strategy for October 26~

◎Strategy and Position

EUR/USD Bearish View

Currently holding a Short position in AUD/USD.

Additional Position”1.1300" adding a Short position

EUR/USD 4-hour chart

EUR/USD Daily chart

◎ Notable Points

Italy Credit Rating Review

Today, S&P is scheduled to review Italy's rating. Currently Italy's rating is the second-lowest within the investment-grade category. Therefore, today’s rating review could result in a 2-notch downgrade, removing Italy from the investment-grade category. If Italy falls out of the investment-grade category, the euro would fall sharply!

Draghi’s Remarks

Draghi’s remarks are scheduled for today. In yesterday’s press conference, his tone was somewhat dovish, but not enough to cause a large drop. Today’s remarks are unlikely to differ significantly, but concerns about Brexit and Italy’s budget plan and rating could become a downside factor.

”1.1330” ~ ”1.1300” to break below will require significant force. Italy’s downgrading timing seems likely to provide the force to push through.

↓↓↓ For details on ratings, please refer to the following article ↓↓↓

Moody’s rating release: Italy downgraded! – Explain FX, what rating means