EUR/USD

For stocks to continue rising, it's crucial that the euro also moves higher. Looking at the EUR/USD monthly chart, you can see that we have reached important levels. Positive momentum divergence is a positive sign.

Daily chart. After Friday's big move, there's been a pullback this week and today we reached 1,25. This could be the low for this pullback. It we continue below 1,25, we'll switch back to the risk-off mode again, with lower stock prices as a consequence. I'm leaning to that this is a bull flag pattern that will resolve to the upside. The daily candlestick also has a bullish tail. We'll see. Look for a break above 1,26 or below 1,25 for the next big move.

Zooming in on the hourly chart, it shows that a break above 1,26 would signal that the next upleg is underway.