EUR testing the 1.108/9x zone this morning as mentioned already earlier this month. At this point all soft hands who tried out guessing the reflationary flows and USD devaluation in December are washed out. Activity for the European open picked up, I remain bullish and have actively been adding longs in EURUSD. Stops can be kept comfortably below 1.103x while targets are located at 1.117x and 1.125x.
Remember we are tracking only three things:
1. the swing which is dictating the range 2. the opposing side which will become trapped 3. the swing behind the swing which is being trapped
The swinging process is attacking the opposition defending the swing you are playing. So in this case sellers are standing between the first targets at 1.125x - thus it would expose the threatened highs. If this breakout is absolute, i.e the swing may make a new higher high then we can talk of a complete swing like in this diagram:
For those wanting to check the Long-Term Fundamental chart:
Good luck all those selling USD, a lot of opportunities in G10 FX.