My trade is to go long the EURUSD above the key 1.1660 level, and key low. Risk reward is attractive with good upside potential. I would stop my loss if price breaks 1.1660 with at least a daily closing. In that case correction might extend. But even in that case, i will be looking to long the EURUSD at lower levels.
I remain overall positive euro and negative USD unless an unexpected economic development shift current monetary policy outlook.
My view is basically based on central banks medium term outlooks, as the USD has already priced in and absorbed all monetary policy tightening expectations in the past years. On the other hand, the euro has plenty of catchup to do to price in a relatively tighter monetary policy by the ECB.
The Interest rate differtials on 10-years bonds between u.s. and germany illustrates the recent trend in market expectations. You can view