@look4edge, Hey, very nice that you clone the rectangle!
Thing is, that with commercials net short on record and sentiment at pure euphoric levels with the european "recovery", euro is just an accident waiting to happen. Maybe I don't trust the pattern ATH, but it's there, so..."close your eyes and pretend that you like it", as they say.
Your blue line is an obvious target. As crazy as it seems, after the previous quarter have done so, now yearly printed a swing low as well. "Synthetic" euro, i.e. pre 2000, it's still in an uptrend and until US budget will be clear, dollar probably will keep falling, now that is breaking the 2017 lows. Euro's recent uptrend momentum is a shortcovering move after the false break i.e. commercials aim to sold it as higher as they can with specs holding the bag as always. Hasn't build bases all along during last years up move and that is making fragile when the cycle turns probably during March or May. What do you think?
@pantheo, hi, as you pointed, dollar still has room on downside, megaphone or 89.62 as w1 top
in eur 1.2092 was last year r2, now blasted up with eur shorts unwinding, that move would need to hit another bearcamp
btw, europe salaries and house prices are flying, ecb will face inflation soon... and europe exports gonna suffer under strong eur
and last week was eur week, mabye next one gonna be cable week
take care
pantheo
⋅
@look4edge, Yes, there is room there for cable there, post it too, or commodity dollars until 89.50 in dollar. Draghi may find another use for his bazooka soon with inflation coming, he is going to be in history books for a busted central bank as he is trapped now. ECB has different mandate than the FED, BOE, or BOJ, as there is not common debt but natiostate. one. Higher euro, as you said, is going to blow off every nation's pension funds, let alone sovereign debt and unfunded social liabilities which are not include in anyone's books yet. We are going into uncharted waters here. TED Spread put a nice morning star yearly reversal and those who play intraday or even on daily they will have the surprise of the the century as volatility will spike higher this year. Cheers, P.