I was just asked my view on EUR/USD. I’ll tell you just as soon as you tell me what is going to happen with equities. If we add significantly to our gains from early this week, EUR/USD should be able to overcome stout resistance at 1.3780 and test the 38.2% retracement of its 1.4865/1.3260 decline, which comes in at 1.3870.
A failure targets a dip to the 1.3450/1.3500 area.
A loss of intraday support around 1.3610 would trigger a head and shoulders pattern on the hourly charts with a downside target at, tada!, 1.3450.
