EUR/USD: To 1.23? 1.30? Where Next After The Big Breakout?

“A closing and sustained breakout through the 1.2092-1.21 resistance area extends the uptrend from the 2016 lows and says the 4Q17 correction was enough to lead to another wave higher. It would validate the 12/28 bullish “holiday“ trend line break which is somewhat suspicious. It would also confirm the bullish weekly MACD.”  

Measured move targets for such a breakout, according to BofAML, are the 38.2% at 1.2286, the 50% at 1.2346, and the 61.8% at 1.2406.

EUR: ‘Higher & Stronger’; Revising Our Euro Are GDP Forecasts & ECB Call – Barclays

Barclays Capital Research has revised its growth projections for the euro area to take stock of the ongoing strength of the economic expansion.

“We now expect euro area GDP to grow by 2.5% (up from 2.2%) in 2018, after 2.4% in 2017, the best performance since 2007…

We adjust our call for ECB policy to take into account these revisions as well as the latest information about the debate within the GC. We expect: 1) an adjustment of the forward guidance on rates to be decided at the April meeting, focusing on the future path for rates and disentangling the exit from negative rates and the hiking cycle; 2) the end of the asset purchase programme in September, although re-investment of maturing securities would likely continue at least until 2020; and 3) a first increase in the depo rate by 20 bp in December, followed by another increase in March 2019 that would leave the policy rate at zero at least until end 2019.” 

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Gerhard F Kempe MBA Ec Banker 2 years ago Member's comment
Barry Hochhauser 2 years ago Member's comment

What is the link for? You didn't say anything about it.