my technical take on eurodollar :
1.
Eurodollar is in a downward corrective .Hence all rallies will be meandering and not very sharp .
2.
The long term bottoming zone for euro dollar is 1.28-1.30 zone .It should make a bottom within next 6 months with 1.30 as a solid support zone.
It looks extremely unlikely that eurodollar will reach 1.24 or lower levels any time soon.
3.
Eurodollar in a shorter term , is near support and should begin a counter trend upmove to 1.41-1.43 zone with a good chance of reaching 1.43 within next 6-7 weeks.
4.
If such a rally as above comes about it will be a point of EXIT for short term play as a move to 1.30 should come about after such a rally.
5.
A move below 1.30 without a rally to 1.41 levels will negate the analysis.
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Hi Vipul: Nice to see you commenting on CCYs. I agree that a move to 1.42 should set Euro up for the next downleg. This could coincide with the blow off in equities
ReplyDeleteWhy don't you take a look at Rupee and provide a Neowave perspective.
BTW I think that the next downmove on DlrYen also could set it up for an upward swing. Would like to hear your thoughts on this as well
Cheers
i will see the charts you mention as i dont usually keep a tab on them
ReplyDelete