Germany's consumer prices could exceed the ECB's target by the end of this year thanks to tax hikes, ECB Governing Council member and Bundesbank President Jens Weidmann said Friday. "The reduced VAT, which expired at the end of last year, and the greenhouse gas tax, which went into effect on January 1. From today's perspective, the agreed consumer price index (EU) in Germany should rise above 3% before the end of the year.
Our Analysis:
Provided that the currency pair is traded below 1.2060, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.2080
- Take Profit 1: 1.2100
- Take Profit 2: 1.2120
Alternative scenario:
In case of breakout of the level 1.2060, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.2060
- Take Profit 1: 1.2020
- Take Profit 2: 1.2000
