EUR/USD to 1.03 in the next 7 months?

EUR, negatively correlated with USD & global stock markets, will be very probably bearish in the next 7 months, while markets are going to be bullish, arriving the EUR at levels approximately of 1.03 versus the US dollar (-8.85%).

The reason why this will happen is fundamental, due to descorrelations.

In this aspect, USD & stock markets should be very probably keeping bullish in the next months while a majority of commodities, EUR and it´s correlationed currencies will be bearish.

As we have written, recession is still not here, we are in a bullish market that will not end up in recession very probably until 2020. In the long term, the direction of the market could be absolutely the opposite, but in the next months, the most probable scenario is this one.

For the funds who are not inside, short positions could be introduced with Sell Stops at 1.13, SLs at 1.15 with <1% wallet loss, and first targets at 1.03, with a horizon of 7 months (Jun19)

In technicals, we have a shoulders-head-shoulders, the cross of the price under a bearish MA210 in the Weekly graphic, a bearish RSI at 35<, the cross of the price under the historical 1.16 support in the last month, and the cross of the 1.14 support this week.
Bearish PatternsEUREURUSDHead and ShouldersMoving AveragesSupport and Resistance

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