Is the bottom in EURUSD close?

7 Nis 2022

Maybe yes, maybe not. It all depends on how ECB will react. reading them and the EUR bond curve price action suggest to me that they are about to finally give up their insane policy and go for some kind of normalization and tightenning soon. That would close the gap between blowing US yields and lagging EUR yields. I don't say a major trend reversal is imminent or even close to happen, but maybe it's just not a good risk reward to be short EURUSD any more at these levels. What's more, maybe a risk reversal option strategy or a Call spread makes some sense in terms of risk/reward.

Technicals:
- Still a bearish chart on both time frames, with some momentum slowdown on daily.
- Daily also shows minor inverse positive divergence in haOscillator (quite a rare signal)
- longer term trendline gives a strong support/resistance level and marks a very good stop loss if someone enters any bullish position