In short: Expectations on ECB action later this week run high… EURUSD has completed a full bullish near-term 5-wave cycle – likely “A” in a broader “A-B-C” correction… BBVA protection has come “a lot” cheaper and may now shield the recently added 516bps peak… SPA/GER spread is also fast narrowing and EuroStoxx50 is paced for a +2310 violation – All in-all high hopes on European officials (beware if they fail to deliver…) EURSEK must not break back below 8.4095 to maintain a 8.53-8.56 correctional objective and EURNOK better hold above 7.42 to add credence to Fri’s surprising burst higher (despite better Brent Crude (still targeting $110.35 or even $115.35))..
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SEB tech team