EUR/USD: 'Elevator Up, Stairs Down'; A Big Deal On Tech Front: Key Targets – Nordea

Nordea FX Strategy Research notes that EUR/USD recent price-action can be summarized by the phrase ‘elevator up, stairs down’.

“….And despite diverging vs rate spreads, despite stretched positioning (on IMM and similar data), despite a higher US economic surprise index, and despite a lull in equity inflows, the pair keeps rising.

We suspect real money reallocations amidst thin markets are at work, and while EUR/USD is now almost in line with its long-term (since 1973) average of 1.18, 1.25 – which is a nice round number, and 1.29 – the average since 2005 are more likely to be seen as “fair” values,” Nordea argues.

Technically, Nordea argues that the weekly close above 1.1685 is a ‘big deal’.

The next likely resistance is the 200wma at 1.1798, above which 1.25 beckons (38.2% retracement of the 2008-2017 drop),” Nordea project. 

Source: Nordea Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
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