Originally posted by CHForex

AB leg in formation....

Sig. Draghi said he was willing to undertake operations in unconventional monetary policy, a possible QE very different from that adopted by the Fed. This can maneuver, however, is conditioned !! The ECB has expressly stated that a possible QE will be possible "only" if member states adopt measures to restructure labor, investment in infrastructure and a healthy balance of the debt. Do you really believe that the situation in Italy, Greece or Portugal can really change in the short term? Do not forget that Germany can safely support a strong euro, it is clear from official statements and estimates of the German central bank, the economy (German) can safely support even a euro to 1.50 .....

Speaking about my technical analysis, in the medium term I see eur/usd possible target 1,22/1,25, after a important rebound of course......

Although we have witnessed quite a technical rebound just before the closure of WS, the cross is still weak. Upon a first support is at 1.2900 area (MS2), but the real strength is in the 1.2975 area, if broken, could we see a clear reversal pattern on H4 (H & S) with a target area in 1.31.
What we need to look at the H4 is the formation of a right shoulder .....
In order to have a trading plan with a low risk factor, wait for the eventual break of resistance and after a small retracement, get into a long position