Its below its longterm downward sloping Moving Averages. At this point it looks like a bounce, thats it.
Here is your bull trade, USDCHF. Three year downtrend some base building, then a strong move above 100 and 200 day simple moving averages. Buying this currency on a retracement would be an excellent strategy. just the carry on a long position is yielding almost 4%. So with 100.1 margin holding this pair would yield 40% even if the curreny stayed flat.
Agree that EUR/USD looks like a bounce. Will change my thought if it convincingly smashes 1.2350, though. Consider it as the 38.2% fibo retracement of the 1.3125-1.1870 downtrend. Strategy at this point should be to buy dips as dailies are bullish. Good luck. -Ivan
Any news last night? I know it broke thru that 1.2250 technical level finally and it was off to the races....
Kastro and many with you, Who cares where and how far it will go ? Stop trying to forecast. You'll never get closer than a wild guess anyway. Nobody really knows. Trade what you see and you would have made an odd 120 pips per 100k contract on this morning's break-out. Hint (for what it is worth): the "smart money" in currency futures is long Euro and short Dollar at a ratio of 4:1 so there is a very good chance (all else being equal) that EUR will rise against the USD.