EUR?USD - A long Term perspective for investors and traders
The long term chart of the eur/usd gives a very clear picture of where we are re price action.
The Long Term Swing Long has been retested and predictably there is a bounce in progress. There is still alot of room for it to run, especially with the ECB promising to do "whatever it takes". There is nothing in the chart to preclude a sizable retrace on the bullish side, with pockets of fierce shorting along the way.
The two areas shown as LT Swings, both Long and Short effectively encompass a huge range that will most likely hold for multiple years, unless there is some truly remarkable unforeseeable news event. Both LT Swing positions have many technical factors in their favor and it is our opinion that nothing short of a huge fundamental event will be a sufficient catalyst to break out of this range.
Our personal view is and has been for the past 4 years that strictly from a fundamental standpoint there is no valid reason for the euro to be above parity with the usd. This is a long term view which more have come to embrace but only time will tell.
We have identified two areas that will likely produce some shorting reaction, but we don't expect the LT Long to fail at this time. If the first short fails, we will expect a more violent reaction at the second area.
All personal views aside, we trade only what the chart tells us, Charts don't lie.
Trade safe.
The Long Term Swing Long has been retested and predictably there is a bounce in progress. There is still alot of room for it to run, especially with the ECB promising to do "whatever it takes". There is nothing in the chart to preclude a sizable retrace on the bullish side, with pockets of fierce shorting along the way.
The two areas shown as LT Swings, both Long and Short effectively encompass a huge range that will most likely hold for multiple years, unless there is some truly remarkable unforeseeable news event. Both LT Swing positions have many technical factors in their favor and it is our opinion that nothing short of a huge fundamental event will be a sufficient catalyst to break out of this range.
Our personal view is and has been for the past 4 years that strictly from a fundamental standpoint there is no valid reason for the euro to be above parity with the usd. This is a long term view which more have come to embrace but only time will tell.
We have identified two areas that will likely produce some shorting reaction, but we don't expect the LT Long to fail at this time. If the first short fails, we will expect a more violent reaction at the second area.
All personal views aside, we trade only what the chart tells us, Charts don't lie.
Trade safe.