Euro selling strategy, is there a Ghosn shock!? ~ Euro selling strategy on November 20

◎Today's Strategy

Euro Selling Strategy

EUR/USD Short Position

New Entry ”1.1400”(see chart yellow circle below)

Stop ”1.1500"(see chart white circle below)

EUR/USD 4-hour Chart

From yesterday, not only the market but also general news and variety shows have been dominated by the topic of the arrest of Renault-Nissan CEO Ghosn. Nissan stock was briefly too heavy on selling to execute trades. Will this become a so-called Ghosn shock? We will watch stock prices closely. However, as of now, there seems to be little impact on the currency market.

Naturally, the Ghosn topic is widely covered in Europe as well, but Europe’s focus is on the Italian budget issue. Chancellor Merkel is stepping down at the next party leadership election, President Macron’s popularity is waning. Far-right parties are gaining support, and former Trump campaign adviser Steve Bannon is connecting far-right parties in Europe.

The euro briefly fell toward roughly 1.1200 as an intraday low for the year, then retraced. After breaching 1.1450, the upside has been capped. If the previous high of 1.1500 cannot be surpassed, I think it may test lower levels again.

EUR/USD Daily Chart

The current euro-dollar rise is partly a correction from euro weakness, but I also think dollar weakness plays a role. Regarding dollar weakness, a major factor is a decline in U.S. stocks; I expect dollar demand to re-emerge from the end of the month into December. If dollar buying returns, I think EUR/USD will resume its decline.

↓↓↓ The reasons for dollar buying are discussed in the following article, so please refer if interested ↓↓↓

Dollar/Yen Buying Strategy! - Bold Dollar/Yen Forecast for the Year