EUR crosses/EUR/USD/FXWW News/Trade Ideas

EUR/USD outlook: Still looking moderately bullish

The biggest clue to the immediate future for the EUR/USD came in the aftermath of the FOMC; a 400 pip rally in a matter of a few hours told us a lot about market positioning and I think the path of least resistance for the EUR/USD is now higher.

The crosses are giving mixed signals, EUR/GBP is definitely bullish as is EUR/AUD but there is a possibility that the break above 1.4400 was a false one? EUR/JPY is trying to form a topping formation but if this pair can get back above 131.50 then the overall bullish case for EUR/USD will be looking a lot stronger.

Looks like a 1.30/1.33 range in EUR/USD and I’d suggest a dip-buying bias but keep a close eye on the crosses at all times.

  1. I am coming to the same view on the EURAUD (false break). Also agree that the price action following FOMC is most telling. In particular, the market seems unconcerned by the corner the Fed has painted itself into – and that is the paradox of a commitment to ongoing monetary accommodation (in response to the clear distress the threat of its removal manifests) against the hint of emerging price effects from base money expansion.

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