Europe is approaching the crisis

Events, which should be paid attention to today:

18.00 Moscow time. USA: Oil reserves.

EURUSD:

two last days we observe powerful sales of European currency. There are already 200 points left before the parity with the dollar. Who could have thought this last summer when the ECB reported on future successes? But this year the situation has changed dramatically. Firstly, we see a powerful increase in inflation and the drop in the euro rate enhances this process in Europe. Secondly, the Russian-Ukrainian conflict It also has a strong negative impact on the European Union. The United States is far from the warring parties and this process has a slight influence on them, and Europe is associated with two of the above states with close economic ties, many of which are now violated. For the EU, now the main risk is stagflation. A number of leading indicators indicate the approach of recession in the European economy, while energy carriers are doing not by the day, but by the hour, which will lead to further growth inflation. As a result, Europeans will receive classical stagflation, the way out of which is possible only through the Tough credit-money policy of the ECB, which in turn will lead to an economic crisis.

Trade recommendation: Sell 1.0230/1.0260 and Take Profit 1.0170.

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