FX.co ★ Breaking Forecast 03/05/2019

The main news on Tuesday morning: China lowered its forecast for economic growth from 6.5% to 6.0-6.5% and announced a large tax cut of 2 trillion yuan, or about $300 billion. This is a clear signal of a slowdown in China's economy.

On Monday, Bloomberg published a forecast of one of the analytical companies, in which in case of a significant slowdown in the Chinese economy, the target for the euro is to drop to 1.0500 in 2019.

The forecasts for the euro are very different - the average forecast is 1.1900, but there are also forecasts for 1.1000 and lower (as we see).

The main news for the market is Wednesday (US employment report from ADP and Fed report Beige Book) and Thursday is the ECB decision on monetary policy.

While there are levels to enter the breakthrough range:

We buy at the breakthrough of 1.1425.

Sell from 1.1308.

More conservatively: Sell from 1.1230.