Targets, Month/Quarter end and keep the bank happy
Following up on my colleague Dubsly’s earlier post It’s been a good ride short from low 1.19s with additions through 1.1875 and 1.1850. Time to take partial profit ahead of the top of the Ichimoku cloud which comes in at 1.1723 today.
I have a next target at 1.1684 , the 23.6% fibo of the whole move higher this year, but reason keeping we shall young Jedi’s! There’s Month and Quarter end rebalancing to come and looking at bond and equity performances across The Pond, the models are suggesting some USD sales to be done . We may get good value to sell the EURUSD pair higher again . I’ll be looking at low 1.18S to get back in as long as we have this combo of a tricky post-election situation going on in Germany, French-German relations a little frisky,an ECB which is still not out of how they’re going to phase out of QE,Fed keeping the December rate hike firm in play and a US Tax Reform hope alive.
It’s a relatively thick cloud , It should take some work to get down the,rising, bottom and there are a few support levels in between. But I could see this move extend to mid 1.15S unless the above cocktail all of a sudden evaporates.