EURUSD building a floor ...are you ready to ride the pig?

2019年7月18日

Here we can make the argument that the market is building a material floor. The 5 wave sequence from 2018 has come to an end and the rebound has rallied through 3 waves implying that it is an overlapping correction. This is complex and a very advanced environment compared with 5-3-5 impulsive legs... this will test the deepest of pockets.

All levels in play are labeled on the chart, anything around 1.121x should be bought and will attract a lot of engagement from the usual Euro bulls. This leg higher will temporarily stop at resistance above 1.133x; which is the 61.8% retracement of entire 'B' leg. A break above will open the doors for 1.14 and extensions at 1.15.

Bulls will desperately aim to push this above 1.14, with Gold already breaking higher it is sending a loud message that DXY will try to breakdown over the coming sessions as we position for Fed.

Those wanting to dig deeper into the macro charts and flows can view the attached charts as we will not be covering that today. Reassessment of the view is needed if we break under 1.12.

Best of luck all those positioned in FX for the summer.