Lately I’ve been basing my skepticism toward a sustained EUR/USD rally on my deep skepticism that the present rally in US equities is anything more than a bear market rally. The rebound in EUR/USD has done significant technical damage to my view, so while I remain bearish on stocks, I’m less bearish on EUR/USD.
Today, the 10 and 21-day moving averages crossed bullishly as the day day average rose above the 21-day average. Also of note, EUR/USD tokk out the 38.2% reatracement of the drop from 1.4737. If EUR/USD pullbacks can hold above the 1.2945/55 region, the rally looks like it could have legs.
