Sentiment for the euro has been negative since the European Central Bank meeting last week; however, Alan Collins from 3c Analysis is expecting to see a sharp reversal in this trend for the EURUSD.

Recently the dollar has showed signs of strengthening, given the release of a positive jobs report last Friday and the strong yields in US bond market. Meanwhile, since the ECB’s introduction of negative interest rates the euro has posted three consecutive days of losses. Despite the negative trend over the past few days, Alan is looking for renewed buying interest for the EURUSD. He is expecting investor interest to come in around the 38 percent correction level.

Alan’s targets for the trade are: USD 1.3578, USD 1.3603, and USD 1.3613. He cautions that a move below USD 1.3490 would negate this trade sentiment.

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