First, the big picture monthly view of the €uro. How long ago it was that we charted the high risk level of 140 (+/-), at which €uro hit the top (down) trend channel line and dumped out of a wedge. Important support was lost at 120 and the anticpated bottom has been the lower channel line.
Today commercial hedgers are in a bullish alignment for the €uro just as they were in 2012 as it began to rise for 2 years in the ultimately ill-fated wedge.
On the other side of the trade are the speculative interests, historically net short the €uro…
…and the public optimism index, which is a reliable contrary indicator and is hyper bearish now.
Finally, here is a dialed in 60 min. view of EUR/USD. It looks bullish on the short-term as it burst up on the bad US Payrolls report and looks to be bull flagging.
Conclusion? Well, the €uro looks bullish on both short and intermediate time frames. Beyond that, out to the long-term €uro is bearish and USD bullish, with a long way to go in both technical parameters and time before that view can be altered.
Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates (including Key ETF charts) and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow @BiiwiiNFTRH.
