Since 2015, I marked the 93-93 region as the market's most pessimistic standpoint on USD. We saw reversals from this band three times before and each time with similar market psychology. Apparently, this time is no different than the others.
USD index 92-93 level might again be a good opportunity to buy the dips. As it happened before, we need a driving event for the reversal, which (I hope) might be the ECB monetary policy statement this Thursday.
In case Draghi disappoints the markets on asset purchase program, a firm green engulfing candlestick might close between 94.0-94.50 by the end of the week. Even further, if upward move is supported by following hawkish FED comments on balance sheet reduction and interest rates, why not consider 97-98 region again this month?
Also, I don't think that ECB is really happy with the current level of EURUSD parity.
USD index 92-93 level might again be a good opportunity to buy the dips. As it happened before, we need a driving event for the reversal, which (I hope) might be the ECB monetary policy statement this Thursday.
In case Draghi disappoints the markets on asset purchase program, a firm green engulfing candlestick might close between 94.0-94.50 by the end of the week. Even further, if upward move is supported by following hawkish FED comments on balance sheet reduction and interest rates, why not consider 97-98 region again this month?
Also, I don't think that ECB is really happy with the current level of EURUSD parity.