EUR/USD technical analysts at BoA Merrill Lynch
- Closing EUR/USD short and US dollar index long
- Says '' both are showing signs of embarking on a strong,near-term correction of the larger" USD bull trend
- Add that " risk/reward is shifting against the dollar"
- EUR/USD is above the "key near-term resistance in the form of the 20 period moving averageon 240 min charts (now $1.0568); this moving average has defined the down trend since late February and its shift from resistance to support points to a near-term shift in trend"
- "We are NOT turning into US$ bulls or EURUSD bears" ... just looking for better levels to re-enter DXY longs and EURUSD shorts
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Do what you like with that.
The next catalyst will be the FOMC and Yellen due Wednesday afternoon, US time. Ryan has a preview, here: FOMC preview - Will Yellen light the touchpaper for rate liftoff?
