The euro once again sits just above the long-term trendline, drawn off of 1985 and 2000 lows. Speculation is that, with Trump and the Republicans at the helm, the U.S. will enter a reflation period that will bring about jobs, growth, inflation and higher interest rates.
The pair posted a huge reversal pattern on the election day but in the current range-bound environment its significance is diluted. Still, both technicals and fundamentals point lower and the next stronger support is seen near 76.4% retracement of the December 2015 - May 2016 upswing, at 1.0780.
The pair posted a huge reversal pattern on the election day but in the current range-bound environment its significance is diluted. Still, both technicals and fundamentals point lower and the next stronger support is seen near 76.4% retracement of the December 2015 - May 2016 upswing, at 1.0780.
