This is a EURUSD Technical Analysis on a Forex Blog.
EURUSD – On the weekly time frame, we see this pair going higher.
With Draghi and his gang talking about the possibility of reversing their loose monetary policy, the euro which in the nearest term due to their negative rates policy have become a carry trade currency.
Carry trade traders would be forced to unwind their trades if the euro starts to become more expensive to borrow.
So, before the bosses at ECB start to really pull the trigger on negative rates, they would be the first to exit any euro carry trades. In other words, they will be buying the euro in order to repay for the euros that they had borrowed much earlier.
I expect EURUSD to at least test the 1.16 zone.
We might see the pair retrace lower to test support at the 1.129 region which is also a great level to enter a buy trade on this pair.
Lets observe how EURUSD trades next week.
Will try to keep you guys updated.
To your success!
Pro Trader & Founder ForexAchievers.com
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