So far we've already made two big predictions on Gold
and the South African rand
and where your money should be.
Today I'm going to let you in on my 3rd prediction for the year – The Euro (EUR/USD).
It seems like Europe is out of the limelight when it comes to the debt crisis with the PIGS (Portugal, Italy, Greece and Spain), and now there are bigger and more current issues in the world.
I’m talking about what is going on with the United States and with the ongoing Brexit negotiations.
These are good places to start to see what I expect for the Euro this year, what the charts are telling me and what you can do to take advantage from the rise.
Let’s get to the third prediction for the year but first, let's talk about…
In 2018, our recommendations could have made you 31%, 37% and even 49% in less than 6 months, while the JSE All Share sank 14%!
Event #1: The biggest story in the world right now
I'm talking about Brexit...
In the middle of January, we saw that prime minister Theresa May's Brexit bill went through an historic defeat in parliament.
With the lack of confidence in the pound we saw a 200 point drop that day. However, the EUR/USD stabilised around 1.1400 showing little selling impact.
What's interesting to note is that because the Euro's move did not seem too perturbed by Brexit's news, shows that buyers are keeping the currency strong.
Event #2: The longest US Government Shutdown
If we move to America things look even bleaker with the continued and longest US Government Shutdown in history.
With hundreds and thousands of people not being paid, we will see the economy will take its toll if there is no end in sight.
This means we will continue to see the dollar weakening, which will result in other major currencies to continue to strengthen like the Euro.
Event #3: The ECBs plan to help the Euro recover
The final event that we could see the EUR/USD fly up soon, is with what's going on with the ECB (European Central Bank).
The ECB is going to continue their plan to end the monetary stimulus in 2019.
This will give the EUR/USD a bullish (up) bias as the ECB tightens its agenda.
All you need to know is that when central banks tighten the monetary stimulus, they raise federal funds rates (interest rates).
This will lead to a rise in net inflows of foreign capital which will make the Euro more attractive, and so we can expect the currency to fly this year.
Even Athanasios Vamvakidis (Head of the European G10 strategy Bank of America Merrill Lynch) based on the assumptions above calls for a EUR/USD recovery in 2019.
This all coincides with my chart analysis which confirms we could see the Euro fly this year.
Let's take a look.
This falling wedge pattern is showing major upside for the EUR/USD
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In the daily EUR/USD chart we can see a bullish (up) falling wedge pattern form.
This pattern is made up of a flag pole (red line) and at the top you’ll see price bouncing up and down two converging lines (pink line) forming the wedge.
First we can see an evident flagpole form (red line) from 2017 up to the beginning of 2018.
Since then, you’ve seen price bounce up and down between the two pink lines, forming the wedge.
We can now expect a break to the upside which is 3/4s at the apex of the wedge. Once we see the price break above the top pink line, the next target will be at 1.2498.
This is a 10% rise which if you play your cards right, you could bank over 1,000% gains with the use of a geared derivative.
How you can take a slice of the 1,000% pie
You can either go long the EUR/USD CFDs and hold until it reaches the target.
Or you can follow a highly experienced trader of 16 years show you how to get in on these international currency opportunities.
To do this you can read more about an exclusive trader service we have to offer called Pickpocket Trader.
“Wisdom yields Wealth”
Analyst, Pick Pocket Trader