EUR/USD: Still the trade most likely to stuff the most people
As we know, the FX market will usually go where it can cause the most people the most pain. To me, that would mean EUR/USD back at 1.3700. I just mentioned that level to someone and he laughed but it’s really not that silly at all.
Can you imagine AUD/USD back at 1.00 and EUR/AUD at 1.3700? Can you imagine EUR/CHF at 1.26 and USD/CHF at .92? In those terms it doesn’t seem outrageous at all, just normal market noise really.
We seem to be entering a phase of USD weakness so keep your minds open to all possibilities.