My picks: Remain Short EURUSD
Expertise: Global Macro, Classic Technical Analysis
Average Time Frame of Trades: 1 week - 6 months
I first sold EURUSD at 1.5510. The pair is now confined to a falling channel established from the 03/19 high with an Inverted Hammer candlestick at the upper boundary seeming to hint a reversal lower in the days ahead. Fundamentaly, the case for EURUSD remains unchanged: a smaller-scale fiscal effort and a deliberately slow approach to monetary easing suggest the Euro Zone's economic recovery will lag behind that of the US, fueling expectations that the Fed will be first to raise interest rates and boost demand for greenback. I will remain short, initially targeting the channel's lower boundary (now at 1.2786) and later the double bottom at 1.2456.
For complete analysis of all the major currency pairs, please see my latest weekly technical outlook report.
