Is this the case of the relentless march of the Euro currency or perhaps is it something more about future perception of Dollar weakness?
EUR/USD bullish pressures continue The hourly
resistance at 1.1777 (25/07/2017 high) is now broken and become the new support. Yes the Trump bet on reflation is weakening immensely and traders are increasingly skeptical of a Goldilocks economic outlook but now we're at the 1.18 smart traders are increasingly wary of a snapback. Position traders should be wary of piling long term longs at the 1.18 as the Dollar is largely oversold. Structural flaws in the Euro zone and a banking mess dims my outlook of a rapidly increasing Euro. So this was more of a case of a downward glance at the new Trump era and the political uncertainty. Woe the day Trump does convince Wall Street he has got it right and investors flock back into the USDX. That day could be coming sooner than Euro investors would think. Swing traders on 15 minute charts are looking for quick shorts on bearish engulfing patterns and other similar reversal candle setups for mood swings signalling a lull and chance for a pullback.
The smarter long term trade is the GBP/USD which increasinly looks like it has shrugged off the Brexit headache with firm support at t 1.3159 (27/07/2017 high).
Happy trading!
