Waiting for Euro Clarity

The FX markets remain tricky as USD is lacking clear direction. EUR/USD has proven especially choppy as the pair struggles to gain a foothold above 1.1400. Our analysis of the cycles suggests the next couple of days should prove important and some directional clarity should emerge. Last week’s high looks key on the upside with traction above there (multi-hour close) needed to signal that a new leg higher is developing. On the downside, a median line channel connecting the April/May lows comes into play around 1.1230 and looks to be the key pivot for the rate on the downside. Weakness below there would be enough to signal that a top of some significance is in place in EUR/USD.

Square USDOLLAR short.