While the in the very short term EUR/USD is , the opportunity to rally much higher has appeared. If price can consolidate here and move through 1.14 the range from February will be broken, and a new long-term trend will emerge.
- The pair struck the and is retracing gains.
- The sell-off may continue to the lower , but a bounce higher from there is most likely. The short term trend is still up.
- Wednesday through Friday next week have a variety of US economic data. If the results are weak, the pair may never make it to the lower . Watch for reversal patterns. I am optimistic the data will be positive which will most likely drive the pair lower first.
- This complements my two fundamental perspectives: the earliest the Fed will raise rates is December, and the ECB has no to keep the Euro as weak as they would like.