The EUR looks very sick on all of the major crosses and as they are the most recent addition to the negative rates/QE club, I’d expect this negative EUR sentiment to continue for some time.

  • EUR/GBP is headed toward longer-term neutral levels near .75 and selling any 150 pip rallies is the obvious play here in my opinion;
  • EUR/CAD, EUR/NZD, EUR/AUD etc are all consolidating recent moves lower;
  • Even EUR/JPY is looking susceptible to a sharp downside clean-out and the big stops are now building below 137.00 according to market reports;
  • EUR/USD is likely to trade gradually lower but in more of a sideways pattern.