EUR/USD: Oversold as it trades at its weakest against the US dollar since June 2017. Caused by the ECB’s moves we had warned about. Chart & Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

EUR/USD SHORT TERM TRADER: Square.

EUR/USD POSITION TAKER: Square.

Chinese trade implodes Exports fall 20.7 per cent

February trade data published in China this morning show that the trade surplus collapsed from 271 billion yuan to just 34 billion; this is linked to seasonality around the Lunar New Year holiday. Imports dropped by 5.2 per cent, following January’s 1.5 per cent decline, while on an annualised basis exports fell by 20.7 per cent; this is almost as bad as the record 26.4 per cent slump in 2009.

US credit card debt set a new record high at $869 billion in Q4 2018; this is 6.9 per cent higher than the previous record in Q3 2008. The number of cards in circulation is roughly 480 million – 1.47 per citizen and a lot higher than the 100 million in 2008. More worrying is that 37 million Americans have cards that are 90 days past due with the amount outstanding $68 billion. At the end of last year total US household debt was also at a record high $13.54 trillion, according to the Fed’s data. IG Index chart

EURO/US DOLLAR

Oversold as it trades at its weakest against the US dollar since June 2017. Caused by the ECB’s moves we had warned about. Not only will they be implementing TLTRO version III, but since December’s GDP forecast for 1.8 per cent growth this year they have almost halved that to 1.1 per cent. Mario Draghi added that rates will remain accommodative ‘’for as long as necessary today’s decisions will support the further build-up of domestic price pressures’’.

SUPPORT RESISTANCE
1.1175 1.1220
1.1130 1.1320
1.1110 1.1420
1.1000 1.1515
Financial Markets and Political Commentary
 

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