German magazine article stirs the pot and sends the EURUSD lower
The EURUSD cracked back below the 61.8% on the German magazine article saying that Pres Trump may impose 25% tariffs on European auto imports as early as next week. There are some other reports that have come out that say Kudlow and Mnuchin talked the Trump out of imposing tariffs, but you never know how the wind blows on any given day with regard to the President.
Stocks moved lower on the news but have since recovered much of the declines.
For the EURUSD, the price moved back below the 61.8% retracement at 1.13135, and has moved to a new session low of 1.1296. A lower trend line is also at risk of being busted (being busted now). The 61.8% is now close risk for shorts.
The catalyst was “the story” for the decline. That story may or may not be true, but traders in forex at least are treating the news with respect. The technicals have weakened as well on the breaks of the 61.8% and lower trend line.
PS. I have noticed new commercials on TV touting Mercedes production of vehicles in the US. Indeed a new plant in North Charleston SC is open and manufacturing Sprinter vans. The vans were previously imported into the NA market.
BMW also manufactures vehicles in SC (and have for a number of years – since 1994). They manufacture the X3, X$, X5, X6 and X7 SUV models in the US. They manufacture 1900 vehicles per day. It is the sole manufacturer of SUV models and employ 8,800 employees.