Euro Finally Dips Back

The has finally dipped back to long-term support around 1.20ish and I see a lot of bearish commentary around it. The bigger picture is still bullish as per the weekly chart, so I will be actively looking to go long on the first sign of a bull signal on the daily or lower time frames.

EUR/USD weekly

The EUR/USD is potentially following the path of 2017-18 as per the chart. If correct, rates could head toward 1.25+ in the next couple of months or so.

With the EUR/USD at these levels, the and other euro crosses could find support.

As a side note, this is why I decided that the private group should take profit on the first portion of their short trades on the EUR/GBP. It may be the incorrect decision, but there is nothing wrong with taking +123 to +169 pips profit on this slow-moving pair. The second portion can remain open in case it keeps going lower over time. This is the before/after chart of the EUR/GBP trade:

EUR/GBP before

EUR/GBP after

Going back to the EUR/USD topic, I remain bullish on this pair because of the potential return to normalcy with COVID vaccines slowly being rolled out etc. I also think the ECB is done with providing additional measures. The next move is likely to be tapering of QE, but this won’t happen any time soon.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.