EUR/USD short looks good with more pressure on the Euro
Yesterday's Q3 eurozone GDP data showed a slowdown for the eurozone. Draghi had spoon about a slow down in momentum for the eurozone rather than a downturn, but as Justin pointed out, this shows the weakest quarter in 4 years. The ECB was on autopilot last week, but at what point will there normalisation outlook be revised. Yesterday's GDP data begins to raise that question. Furthermore, the GDP data out of Italy was poor too with a flat 0.0% reading vs an expected 0.2%. After this miss Italy's government came out insisting that they would still be sticking to their 2.4% budget deficit submission.
The growing disparity between the US and the eurozone makes a EUR/USD attractive look short. I favour a short entry at the big round number of 1.1400 with stops at 1.1425. Target is flexible depending on price action, but just above 1.1350 as a first target makes sense at recent support levels.
