EUR/USD: New unexpectedly bad news needed to keep the channel trending down – SocGen – FXStreet


EUR/USD has been in a very clearly defined downward-sloping channel since February. Unexpected bad news is needed to keep the channel trending down, Kit Juckes, Chief Global FX Strategist at Société Générale, reports. 
“Warm weather is fuelling (relative) optimism about the energy crisis, even if Germany’s IFO data is deep into recessionary territory and the ECB’s Bank Lending survey shows financing conditions getting tougher.” 
“If recession is ‘in the price’ maybe a hawkish ECB message, 75 bps rate hike and plans for mid-23 QT won’t come as a surprise, but still could trigger some short-covering in EUR/USD.” 
“Some new unexpectedly bad news would be needed to keep the channel trending down.”

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AUD/USD is looking to extend the upbeat momentum above 0.6750 on Thanksgiving Day. The extended selling in the US Dollar, on dovish Fed minutes and poor US economic data, underpins the Aussie even as China's covid cases jump to a record high. 
EUR/USD pares intraday gains around the weekly top as it makes rounds to 1.0400 during Thursday’s Asian session. The major currency pair’s latest pullback could be linked to the market’s fears from the Coronavirus, as well as consolidation due to the Thanksgiving holiday in the United States.
Gold price has shifted its business above the crucial resistance of $1,750.00 in the Tokyo session. The precious metal is expected to extend its gains further as investors are dumping the DXY amid a significant increment in investors’ risk appetite. 
Tron price (TRX)) has witnessed a severe decline throughout November. As a consolidation ensues, the technicals suggest one more low is on the cards that could wipe out early bulls. Key levels have been defined to gauge Tron’s next potential move.
Stagflation is coming – and it could make the 1970s look like a walk in the park. As you’ve probably noticed, I expect a recession next year, and I’m not alone, as this has become the baseline scenario for many financial institutions and analysts.
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