ridethepig | EUR Market Commentary 2020.13.01
Updated
Currencies behave in set patterns, they prefer the comforts of routine. With DXY sitting at resistance, I don’t see room for any further near term gains in Dollar. More importantly we are approaching key value levels from the last Q and large corporates have been spotted on the bid in EURUSD.
Here the choice is between 1.128x and 1.21xx. The first results will be discovered faster and allow for USD bulls to form some defence...
The second move involved a double swing, automatically ruling out soft retail hands thus...
This is another known swing, completed in 5 waves from the 1.08xx lows. Double swings are purely a tactical weapon. For macro players they are terribly compelling; even the sluggish corporates will panic - driven to flight via global reflation.
We shall close this chapter with three sample charts.
1. In the macro breakdown I mapped some time ago, things came down to the following interesting positions:
Bulls have been successful with the breakout in the technical channel. Bears now played the profit taking game and ended in a pullback.
2. Note the powerful breakout cooking; bulls are already loaded and yet only a few weeks prior bears were safe and sound betting on the downside. The trend changed without retail being able to smell anything cooking !!!
3. The following well known daily chart was no less unnatural:
The somewhat theatrical gesture from bulls - has worked; bears who wish to defend forthwith, are finding the defence impossible. As long as DXY comfortably holds below the resistance I will maintain a core bullish view on Euro.
Look to buy dips into 1.1080 if you are not already in full positions.
Good luck all those on the buy side; as usual guys thanks so much for keeping the support coming with likes, comments, questions and your charts!
Here the choice is between 1.128x and 1.21xx. The first results will be discovered faster and allow for USD bulls to form some defence...
The second move involved a double swing, automatically ruling out soft retail hands thus...
This is another known swing, completed in 5 waves from the 1.08xx lows. Double swings are purely a tactical weapon. For macro players they are terribly compelling; even the sluggish corporates will panic - driven to flight via global reflation.
We shall close this chapter with three sample charts.
1. In the macro breakdown I mapped some time ago, things came down to the following interesting positions:
Bulls have been successful with the breakout in the technical channel. Bears now played the profit taking game and ended in a pullback.
2. Note the powerful breakout cooking; bulls are already loaded and yet only a few weeks prior bears were safe and sound betting on the downside. The trend changed without retail being able to smell anything cooking !!!
3. The following well known daily chart was no less unnatural:
The somewhat theatrical gesture from bulls - has worked; bears who wish to defend forthwith, are finding the defence impossible. As long as DXY comfortably holds below the resistance I will maintain a core bullish view on Euro.
Look to buy dips into 1.1080 if you are not already in full positions.
Good luck all those on the buy side; as usual guys thanks so much for keeping the support coming with likes, comments, questions and your charts!
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