EUR: Contrarians should start sharpening their pencils…

My modelling of the EUR pairs is giving me some very interesting results and I really like the risk-reward around the long EUR play near current levels.

EUR/GBP is approaching very strong technical support levels near .7000/25, EUR/AUD is holding above support at 1.5150 and EUR/NZD has again bounced off its springboard base near 1.6200.

Throw into the mix the heavily bearish sentiment and heavy short positioning in certain speculative sectors, and I start to get the feeling that the EUR is ripe for a sharp rebound.

EUR/USD has been chopping sideways in a 1.08/1.16 range for the last 6 months and as we know, the FX market does like to range trade.

I’m not jumping in just yet, as position taking during Asian trade can be very frustrating especially in the EUR and the GBP, but I am looking for a buy opportunity in EUR/USD. As always, let’s watch closely and see how the price action develops.

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