EUR/USD

The euro had a horrible week, as we have sliced through major support in the form of the 1.04 handle. That being said, the market is now extremely oversold so I would anticipate that the beginning of the week might be more about recovery than anything else. However, that recovery should end up being a nice opportunity to start shorting the market again, as the euro looks all but predetermined to reach the parity level sometime this summer.

It’s worth noting that I figured parity would be hit sometime in August, but it would not be surprising at all to see it happen this week. The parity level will attract a lot of attention, so I would anticipate a short-term bounce in that general vicinity.