Not much happened this week, USDx still stuck in the same range, which favors dollar bulls, as the longer we stay in this range, the higher it will spike, once it breaks out. USDx bulls moved a little bit higher again this week, created a higher high and higher low and looking at weekly, after 3 strong bottoming candles, its ready for the big move. BUT next week is an ECB week, so anything is possible ahead of thursday…euro can start falling on monday or can be ranging until thursday or try to break higher, above 2200 again. But if it breaks higher, it should be only a good short opportunity, it shouldn’t be very comfortable there, as it wasn’t comfortable above 2200 this week. Euro bulls are clearly exhausted, so whatever happens before ECB, my medium term targets are still 2060, 1980 and finally 1830. But as for monday, 2150-60 will be important for bears to break. It is very near the closing price, but strong bottoming was happening there during London fix and after, until market close. Once that fight is done and bears have won, it should re-visit the 2100-2110 area again…and if 2100 breaks, it should be over for euro bulls, for now.
