EU was finally bullish this week, but the bulls were so weak, its almost unbelievable. GU, AU, NU made nice gains…Euro bulls were a joke compared to all other USD pairs. And this tight range around 1600 might prevail a bit longer. There are no major events next week, so with bulls having a hard time breaking higher and bears having a tough time to break below 1580, 1550 and 1520, I don’t expect much with this pair. The week after that we’ll have an ECB meeting, so thats when EU might start moving properly. Until then, it might be better to look for GU trades and EG trades. GU looks like its ready for some drop…it should easily drop 100 pips or more…at the same time EU has many strong support zones every few pips on the way down, so its downmove should be limited. Which makes a good case for EG longs, as the pair is extremely overstreched, with no corrections.
