I will come back and provide a more in depth analysis over the next few days, but I am beginning to be more convinced that the euro will continue to underperform relative to the dollar. Back with more in the next few days.
Trade active:
This trade idea has also performed well. The 1.2080 may be a good support level in the short term and I am looking for an eventual move to 1.15, I'm just not sure if it will happen on this downwards move or in the near future after we see some more rangebound trading or retracements. Anything trading above 1.25 will signal further upside for the euro, i just don't see it happening with current drivers in favor of the USD on both fundamentals, technicals, and geo-political levels.
Trade active:
Continuing to see further downside movement with some retracements along the way. Perhaps a retracement is due in the next few days so keep an eye on fundamental drivers such as positive economic developments in the EZ. Also, if middle east tensions ease, we will see the dollar weaken, for retracement purposes.
Trade closed: target reached:
Target has been reached. Will now look to retrace the move to 1.20+.