DailyFX Tips & Picks: Analyst’s pick

CURRENCY STRATEGIST
CHRIS VECCHIO

My pick: Waiting for euro-dollar, euro-yen range breaks
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: A few days to a few weeks

The ECB has dampened stimulus speculation as a driver for the 18-member currency, so we turn our attention back to the charts for guidance. Whereas euro-yen and euro-dollar looked to be making significant breaks, signifying the start of a new wave of weakness, the reversals seen on Thursday simply can’t be ignored. What this means is that euro-dollar needs to see a move out of (and daily close beyond) $1.3675 to the topside or $1.3585 lower before acceleration is truly possible. It’s a similar picture for euro-yen, with ¥139.95 and ¥138.10 governing price over the past few weeks.