The price of EUR/USD looks stretched and approaching a key support area 1.108/1.105, aggressive traders could look to buy from that area to get back to 1.12 before the main short trend resume (red lines). Thursday and Friday will be a very volatile days for this pair and may be a good opportunity to buy deeps.
Backup plan is sell a retrace after a break and close...
After the last RBA meeting there has been a little shift from a clear dovish statement to a more neutral one, in the other side instead, we should not forget the Euro is in the middle of a QE. Technically it looks like the momentum is fading and a lower high could be in place.
As we all know the EUR and the JPY are both weak currency (QE and QQE), but here is where the risk on/off may play a big role, in this case they are one opposite to the other. I believe a risk off type of investment is just around the corner and so this cross could play very well.
Technically a big reversal pattern is on its way, we are already in the first area...
BOE is the only other central bank talking about rate hike and so for me GBP is the best candidate to fight against the USD strength.
Technically we have been range trading since 2009 and at the moment we are in the lower part of the range, furthermore my eyes see a good reversal pattern forming, not yet confirmed.
waiting mode and so range trade ?
Until the FED really hike or there will be an agreement or not EU/Greece or the ECB will do the next move, investors may be in waiting mode and usually range is the best way to trade until the next fundamental "shock" appear.
As the fundamental situation is changing I am looking to join the new up trend building.
RBNZ last year was rising rate and now they are thinking to cut, on the other hand RBA after the last cut is becoming more neutral.
Technically this cross has made a new higher high coming from an all time low, at the moment it looks too stretched and in need of a technical...
