I originally predicted the dollar to pull the pair back to parity, but I may have to invalidate that prediction. Currently the pair seems to be forming a cup and handle pattern. The handle will allow the dollar to pull the pair back onto the critical support at 1.07, the 61.8% Fibo retracement rate. This rate also coincides with the blue 23.6% Fibo and the 50-day MA currently at 1.072.
If the dollar fails to hold the pair below the 50-day MA rate and the critical support at 1.07 it could allow the euro to push the pair back towards 1.15 (the high just before the Fed started its hiking cycle).
If the dollar fails to hold the pair below the 50-day MA rate and the critical support at 1.07 it could allow the euro to push the pair back towards 1.15 (the high just before the Fed started its hiking cycle).
