EURUSD follow up

On April we wrote the following piece of advice: link. We saw a "trap" at the end of 2016, so we decided to bet on a temporary climb of the euro. We were right. Now we are outside the former range and 2 things could happen:

- We can see another trap, but now on the upper side of the range (therefor a bearish movement for the EURUSD). In just a few weeks we will know.

- We can see a pullback to the former resistance (lower red line) and then a movement to the upper red line.

We expect the second is going to happen for a few months. We don't think the EUR will structurally recover from the peak, in fact, in the long run we are betting on the USD, but everything takes time and the bearish movement could start next year.