As predicted in our watchlist, the EURUSD pair has reached the high of the range, very slightly blowing out our 1-month target of 1.175 we released on 3-Dec.
What’s next IMO is a retracement to the lows of this range.
We do have trendline support around 1.1685, however, this only has one touch since the anchor, meaning that it very well could break. I’m more interested in the shorter-term trendline which would see us reach a level of 1.155.
It’s a difficult time of year as the liquidity is dried up given that most market participants have taken time off for the Christmas and New Years period. In saying that, their return in the next week or so could provide us the volatility we need to reach the target of 1.155.
UPDATE 22-Jan
It took a crack at going short, but USD weakness has come back in so this will be archived for now.
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