EUR/USD Probe of 2015 Trendline Looking More and More Like a Trap
Chart Prepared by Jamie Saettele, CMT
-The last update noted that “EUR/USD dipped below the 2015 trendline turned up. The action at the trendline could be a ‘fake-out’ that results in a broader reversal…” One reason to suspect that the drop under the trendline was a trap is that USD/CHF poked to new trend highs and reversed on Wednesday while EUR/USD held the low. This non-confirmation of USD strength warns of a more important inflection point. Upside levels to be aware of are the January low at 1.0710 and the well-defined 1.0820s.