Back in February we talked about euro and highlighted a potential support near 1.07. Well, since then pair came nicely down to 1.07 and reversed higher in the last few weeks, as you can see on our updated chart below. In fact, price broke out of a downward corrective channel which signals for more strength, especially as ECB can be hawkish this week; definitely more than the FED. Latest Manufacturing US PMI data contracted furthers, which can be one step closer FED to cut rates, but services PMI and NFP on Friday will also be important indicators for FED’s decision. Well, from an Elliott wave perspective, we expect further euro strength in the near-term, up to 1.09 possibly even 1.1 area.
For more analysis check our latest video below.
Grega
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