Breakout or fake-out? Will it soar or slide back into the channel? Not financial advice... but if forex is your thing, this one's worth watching this week 👀💸
Breakout Scenario
Bullish on EUR/USD (Weaker Dollar Thesis):
A weaker dollar may boost U.S. investments into the Eurozone, increasing euro demand.
Central banks and investors are diversifying away from the dollar due to U.S. debt concerns and trade tensions.
Growing euro reserves could support a stronger euro.
Consider going long on a breakout.
Fake-Out Scenario
Bearish on EUR/USD (Stronger Dollar Thesis):
The U.S. dollar remains the top reserve and safe-haven currency during global uncertainty.
Stronger U.S. economic performance vs. the Eurozone (GDP, jobs, spending).
Higher U.S. yields and equity returns attract global capital.
Eurozone’s energy dependency (priced in dollars) hurts its trade balance.
Dollar dominance in global commodities (oil, metals) keeps demand high.
Feel free to write your comment and let us know what do you think…