EUR/USD is trading at higher levels than it used to. What does this mean moving forward? Here is a technical view from Nordea:
Here is their view, courtesy of eFXnews:
While some technicals suggest the USD may pause here, the overall decline in volatility, caused by better global data – notably from China – is a headwind to the USD now…
The EURUSD? I hear many concerned that Draghi will be worried about currency strength, but with retail sales and IP strong recently, core inflation firming again, Brent oil rising, FX correlation with 5Y5Y moving in favour, EM FX performing …I don’t think it they care about the EURUSD level as much. But the Market does the caring, already pricing an around 7bp rate cut from ECB within a year.
The EUR/USD is moving to my target trend (1.1540ish), once above – nothing can stop it from a move toward 1.18-1.19. Because…history rhymes. Update in the last chart below.
