The European Union is great at one thing: holding summits. Brussels has the ability to negotiate any topic into the ground without ever reaching an agreement. The EU is now at it again. The fact that the EU functions on unanimous votes, which means all members have to agree, renders the entire institution useless. The idea is to show solidarity, but in reality the EU lacks this. It is almost impossible to get 28 different countries with different needs and backgrounds to agree on key topics. One solution doesn’t fit all European countries and creates great imbalances.
Germany and France seek to force their will on the rest of the EU, but member countries have had enough and are standing up. Hungary, Poland and the Czech Republic on the periphery and Italy inside the Eurozone. The UK has voted to leave the EU altogether which should be seen as a warning sign that despite the love of summits, there are grave issues at the very core of the EU. Next May’s election may sweep in a new direction with populist lawmakers replacing dysfunctional ideas favored by the likes of Juncker, Tusk, Moscovici, Merkel and Macron.
Brexit may actually take a back seat despite another deadline approaching which is likely to pass without an agreement. Security, especially cyber security, will be one key topic for EU members to discuss. Issues from the 2015 refugee crisis have not been addressed and the asylum system remains a mess while migration control agreements remain absent. Climate issues have been addressed for the most part by verbal agreements and written statements, without actions taken.
Does anyone even care to address the issues with the Euro? There are fundamental as well as structural problems with it, they are well known, but all the EU does is talk about them. How will forex traders react to the Euro as this week’s summits will be peppered up with plenty of unanimous statements and handshakes, but no actions? Open your PaxForex Trading Account now and beat the rest to the most profitable trades.
Poland is currently questioning EU law and if it violates the Polish constitution. The issue is if EU law supersedes Polish law and this applies to every other member as well. The 2009 Lisbon Treaty allowed local judges to ask the European Court of Justice for assistance and bypass local law. Also in 2009, Germany’s top court stated that the German Constitution superseded EU laws. In other words Germany first, EU second. Poland wants, rightfully so, the same treatment. There is a big divide behind the handshakes in public across the EU and EU Summits can’t fix Euro problems, but here are three forex trades to fix your profits!
Forex Profit Set-Up #1; Buy EURUSD - D1 Time-Frame
The EURUSD contracted from its horizontal resistance area on the back of profit taking following a solid move higher. The sell-off was stopped after price action met its primary ascending support level which led it into its next horizontal resistance level. This currency pair is now on its way down again, but expected to reverse once again off of its primary ascending support level. Forex traders are therefore advised to buy the dips from current levels.
The CCI is currently trading below the 0 mark and on a downward trajectory, but remains well above its most recent lows. A brief dip into extreme oversold conditions is likely. Follow the PaxForex Daily Fundamental Analysis and earn over 500 pips per month. Let our expert analysts guide you through the forex market!
Forex Profit Set-Up #2; Buy EURGBP - D1 Time-Frame
Give this week’s EU summits, the EURGBP may benefit as more rhetoric will emerge in regards to Brexit. Price action just pushed above its horizontal support area and is now faced with is primary descending resistance level, closely followed by its secondary ascending support level. A double breakout will take this currency back into its next horizontal resistance level. Forex traders should by the dips in the EURGBP before the double breakout occurs.
The CCI recovered from extreme oversold territory and now carries enough bullish momentum to push above the 0 level, supporting more upside in this currency pair. Subscribe to the PaxForex Daily Forex Technical Analysis and duplicate the recommended trades and profits from our expert analysts!
Forex Profit Set-Up #2; Sell EURCHF - D1 Time-Frame
Following a breakout above its horizontal support area as well as above its primary descending resistance level, the EURCHF advanced amid a combination of profit taking and weaker fundamentals out of Switzerland. Price action approached its next horizontal resistance level which was enforced by its secondary descending resistance level and is now driving the EURCHF to the downside. Forex traders are advised to sell the rallies from current levels.
The CCI already completed a breakdown below its horizontal resistance area as bearish momentum is accelerating, expected to push this technical indicator further to the downside. Download your PaxForex MT4 Trading Platform and start creating a portfolio today, in order to harvest the rewards tomorrow!