EURUSD just marked a local bottom.
The structure of EURUSD behaviour suggests that it could stay in upside posture for a long while (be it mellow).
Fundamentally, the entrenched idea is that ECB is at the inception of its QE and the FED about to raise rate. Any change in that mix would considerably change the picture.
The strategic positionning seems to be short EURUSD. That could generate squeezes if there is any surprises.
Conclusion:
- The bottom could be in place.
- 1.20 could be reached in zigzag.
- A new bottom at 0.90 could potentially be reached but probably at a much later date in 2017/2018.
The structure of EURUSD behaviour suggests that it could stay in upside posture for a long while (be it mellow).
Fundamentally, the entrenched idea is that ECB is at the inception of its QE and the FED about to raise rate. Any change in that mix would considerably change the picture.
The strategic positionning seems to be short EURUSD. That could generate squeezes if there is any surprises.
Conclusion:
- The bottom could be in place.
- 1.20 could be reached in zigzag.
- A new bottom at 0.90 could potentially be reached but probably at a much later date in 2017/2018.
