With the ECB set to start tapering their Quantitative Easing next year, it could mimic the reaction that the dollar went through, when the Fed signal that they were about to tapper. Current price action is also similar to what this pair went through from 2000-2002.
FED (Quantitative Easing) > BOJ (Quantitative Easing) > ECB (Quantitative Easing)
By the above order, we have seen rampant strength in the currencies when the Quantitative Easing program has reached its limits. We got an extremely strong USD since 2013, yen strength starting to show up the start of this year, and I believe Eur is going to be next, for 2017.
Trade Idea, Long EURUSD, @1.07
SL, 1.0489
TP: 1.22 approx. (50% fibo retracement level of fall from 1.4 to 1.05)
FED (Quantitative Easing) > BOJ (Quantitative Easing) > ECB (Quantitative Easing)
By the above order, we have seen rampant strength in the currencies when the Quantitative Easing program has reached its limits. We got an extremely strong USD since 2013, yen strength starting to show up the start of this year, and I believe Eur is going to be next, for 2017.
Trade Idea, Long EURUSD, @1.07
SL, 1.0489
TP: 1.22 approx. (50% fibo retracement level of fall from 1.4 to 1.05)