As wrong as it feels right now we’ll assume this 3-day EUR/USD strength, and the channel break that comes with it, is fake--similar to the fake efforts of CABLE at 1.55 before its big drop. In that case the pair will try the downward channel support at around 1.062, which is where the pair was hovering at before the 400-pip move upwards on the ECB’s Draghi speech happened. Although a move below that level is possible we’ll assume the pair will move back up inside the channel as seen in the WEEKLY chart. A violent reaction above 1.09 in that case we’ll cause a real break of the channel as seen in the DAILY chart and the pair will rocket to 1.1150 at some point within the 2-month period.

We’ll include a small correction in our prediction at choose the 1.1060 level as our prediction, about 100 pips above the current price.


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