EUR/USD set to extend gains as momentum strong

The bullish outside days printed by volume-rich currencies such as EUR or the JPY against the USD is further testament of the market intentions to extend the weakness in the latter. If we pay close attention, the pairs gather all the technical evidence one can possible get to join the momentum, from solid closes by NY cut out time, POCs trapped behind, moves not yet over-extended judging by the slow stochastics, the slope of the 5-DMA in favour, correlations pointing in the same direction. The one discussion that EUR bulls won’t probably come up victorious is the fundamental state of the European economy. The downgrade by the German economy ministry of its growth forecast for 2019 by a whopping 0.8% from 1.8% to 1% is a very gloomy prognosis of the turbulent waters ahead.