I have been “Pound”ing the table on the Euro for the past few weeks trying to bring up the fact that consensus just may be wrong. Both the Pound and the Euro today put in massive reversal bars, the pound off of lows (besides the flash crash) and the Euro off of major multi year support.
The Euro is not clearly above this multi year support (two red lines from prior lows) and you have a DEFINED low here. If the Euro drops this the bears win, but right now the bulls have the ball and the bears are offsides, bigly.
Here is the pound, a big outside day reversal off the lows. With the FTSE out of control to the upside and going to come down, I believe the pound is going to rise from the ashes here in 2017.
In my Closing Prints – “What are the Odds?” – post I said that the bears had fumbled and the Euro is going to rise. I am even more confident in this now and the pound.
All anyone has talked about is the Bullish dollar since the election. That is why you saw this forced liquidation in the $USDJPY today. Look Below. Massive selling going on because everyone is buying the top.
Again, Anything that happens in between the Range of Today is all BS. If the $DXY get above this range bulls win and going to 110. However if the dollar gets below todays range look out below and the Euro is going to 1.10+