Parity in the euro can't come without a MAJOR event happening.
In the meantime, it would be in the market makers best interests to prop up the euro short term, giving the illusion that due to euro being 'stronger' than it was a few months ago, it's the best time to invest in Europe bla bla bla...
Once many of the huge funds, whale traders etc placed their stops below major sellside liquidity pools, that's when the rug gets pulled
Pulled all the way down to parity!
The question is, what news event will it take for this scenario to pan out?
In the meantime, it would be in the market makers best interests to prop up the euro short term, giving the illusion that due to euro being 'stronger' than it was a few months ago, it's the best time to invest in Europe bla bla bla...
Once many of the huge funds, whale traders etc placed their stops below major sellside liquidity pools, that's when the rug gets pulled
Pulled all the way down to parity!
The question is, what news event will it take for this scenario to pan out?
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1.05344 is the daily buyside which Monday failed to reach. Throughout the week, Euro traded to the downside and has managed to close the the nearby fair value gap but supporting bullish narrative with the daily candle bodies closing above the recent swing lows.
Note
With a bit more room to go in order to reprice at a discount, EUR/USD is relatively weak in comparison to GBP/USD.
Dollar presenting risk off conditions will allow EUR/USD to sell off easily into a discount whilst GBP/USD have the potential to sell-off into the predetermined inefficiency before a retracement.
Note
I would like to see a sharp rejection from the consequent encroachment to validate the bullish weekly bias.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.