EURUSD Feb 03 to Feb 07 Outlook

Recap
Previous week close rejected and acted as resistance since. We know that bulls and bears have a wide middle ground between 1.35 to 1.37. Since 1.37 was rejected, back down to 1.35 again. Closed the week below Y-1 and near week low.

Outlook
Very interesting setup in place. 1.35 was the unofficial preferred floor mentioned so many times by the ECB and EU officials that it is actually scary to sell the zone. That drives everyone to pick bottom there.

Sounds familiar? Yep, that’s what they did several years ago when they pushed Euro above 1.4 and did the same jawboning. And we all know the consequence.

Until I see B-0 acting as support, there is no evidence that we are not seeing a similar breakdown in progress.