EURUSD Wedging Up

EUR/USD has been gently trying to rally in recent days with the USD peaking with US interest rate a week ago.

SInce the US interest rates peaked the edging lower has allowed the EUR/USD to bounce and if we head into full blown recession, US rates have the most to give back whilst EURO rates have moved little in the biggest European bond market Germany.

So the big USD rally on inflation will be reversed if US leads us into recession. But in the short term to break topside here we just need Stocks to continue to find support and continue to lead the market higher.

End of Month flows should help stocks this week so better than average set up for next few days for a least a test of key wedge resistance about 1.0650.

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