EUR/USD: Overall bullish but….
- The USD has started to lose its shine and the market is trimming longs at the moment.
- EUR/AUD looks overbought on medium-term outlook. Has been struggling to confirm above 1.4400 and we could see a pull-back toward more neutral levels near 1.40.
- EUR/JPY has come a long way in the last few months and although the outlook remains moderately bullish, we could easily see a pull-back towards 127/128 without altering the bullish outlook.
- EUR/GBP looks mildly bullish whilst above .8550 but EUR/CHF is struggling to maintain gains and is starting to look a bit heavy.
- EUR/USD short-term technicals show consolidation between 1.3250/1.3300 whilst the longer term picture shows sideways range trading roughly between 1.2750/1.3400.
Looks to me as if we get further sideways movements, just a matter of picking the ranges as always. I prefer the buy-big-dip strategy but selling intraday rallies towards 1.34 also has its attractions.