EUR/USD Targets
Continuation of my previous post, where I talk about very short-term target of 1.4000 in tonights Globex session, here I am exploring short-term, intermeidate-term and longer-term targets for EUR/USD. Down-trending Line3, which marked the top in September and December, gets tested again in next few days, taking it back up to 1.4300. This should coincide with SPX high of 970 or so.
After that I foresee a quick retracement to 1.3500 to the underside of the upward channel, Channel3. This should take SPX down to 880 region. A more severe, but less likely scenario is going all the way back to 1.2500 coinciding with a much larger retracement on SPX down to 790 – 820 region. I believe that given the amount of optimism, a 10% retracement from 970 to 880 is all we will get.
I will talk about more longer term outlook in another post tonight. My longer term outlook is some more inflation followed by severe deflation. As always, if you found something useful in this post, please feel free to share some love.
