EURUSD

21 בדצמ׳ 2018

The bullish view in the Euro has finally been vindicated by price action. After one of the longest compressed ranges I can recall, especially on a closing basis, the market has made up its mind. I also note that a period of compression follows expansion and that’s what’s been set into motion, potentially, in the EUR/USD chart, following the breakout and acceptance of the price above the 1.14 round number on a daily close. With the valuation in the pair signaling targets of 1.16-17 ahead, I can’t envision any other outcome other than sticking with longs as the core view going forward. There is definitely the risk of choppy/erratic movements well contained below 1.15 as we head into the holiday period, but in my view, the market has spoken, just look at the breakout in the DXY too, and it heralds more downside for the USD.