- Priced failed to make a lower low for the second time. It seems bearish momentum cannot extend -> also reflected in EWO lows. - Price has been forming a bullish wedge since Agust/2018. This barriers of the wedge are tightening. - Volatility is extremely low. - As Bund yields Will be somehow limited to the downside (it's already trading at -0,21 % today), but Treasury yields have room to fall, the yield spread between EUR and USD can shrink (collapse?) further.
- Key levels to watch for a bullish reversal are: 1,1190 / 1,1240 / 1,1280. Bullish confirmation would be a close above 1,1320, opening space to an initial rally up to 1,1600+.
Strategy: We bought some minor long position today at 1,1150. We will leverage up the position in case price confirms with breaking through the above key levels.