EUR/USD - The Next Steps

EUR/USD took off in a strong bullish move after taking out its November high at 1.3081 and thereby breaking out of its trading range. It is now making a correction after it tested strong resistance at around 1.4700. We expect a 3 legged correction to at least 1.3870 but more likely 1.3610 before EURUSD is picking up and resuming its bullish trend and taking out its resistance at around 1.4700 testing next resistance at around 1.5100 in January. We do not expect that level to offer much resistance before EUR/USD could rally to 1.5700 in Q1. The picture will be demolished if the correction drops below the 61.8 correction at around 1.3375.

Danske Bank
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