EURUSD has a "fair value" of around 1.36 according to OCED (data.oecd.org/conver...wer-parities-ppp.htm)
It was oscillating around that area for a while until a period of divergent monetary policy - the fed stopping their money printing presses and the ECB starting theirs. This brought the Euro to almost parity.
But now we are entering a period where both central banks are reducing their QE activity.
I think we will start moving back towards that 1.36.
Take a small position today because this is nice retracement. A small position allows you to take a much bigger loss in terms of pips. Add once we're back over 1.18/9 and then keep adding on weakness and taking some off on strength.
It was oscillating around that area for a while until a period of divergent monetary policy - the fed stopping their money printing presses and the ECB starting theirs. This brought the Euro to almost parity.
But now we are entering a period where both central banks are reducing their QE activity.
I think we will start moving back towards that 1.36.
Take a small position today because this is nice retracement. A small position allows you to take a much bigger loss in terms of pips. Add once we're back over 1.18/9 and then keep adding on weakness and taking some off on strength.