Breaking out of long term downtrend. I like this on any pullback!
Given divergent Central Bank policies and the Swiss wish to intervene in the FX market to suppress the Franc, USD looks like a great bet for the next couple of years. Euro zone political instability could serve to strengthen the Franc, but relatively speaking the dollar should still prevail. This looks like a pullback that we should be buying.
Euro should drift toward and eventually past parity with USD. Any short term bounces should be sold unless and until 112.996 is broken on the weekly chart. If it bounces from here (which it could) it should meet with more resistance near the 1.0757 declining 9 wk MA and then the 1.1041 declining 30 wk MA. Fundamental reasons include: ECB extension of QE...