Just a quick update to point out that EURUSD just reached our next upside target of 1.24. In our last major update [see: Jan 18 Update on EURUSD] we identified this as the backtest of an alternate IH&S Pattern neckline as well as the top of the rising white channel which has guided the pair higher since the previous rising broke down in October 2016.
But, it’s been on our radar since EURUSD broke out of a falling channel on Dec 29 [see: A Good Start?]
Same caveats as USDJPY:
(1) DXY isn’t quite to our target range of 88.423-88.682, and it has the potential to drop to 87.4 if the Fed doesn’t panic right on schedule.
(2) With all the rhetoric surfacing in the White House and at Davos, an overshoot is a distinct possibility. And, with Draghi scheduled to pontificate tomorrow, anything could happen.
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