Since my last analysis EURUSD pair is moving upwards and broken above the longer-term trend line. Now is this a breakout or fakeout?? Well We will see tomorrow after Mario Draghi's press conference. Draghi is expected to give the pair further direction. The market can see fake spikes during the press conference but I would suggest to trade wisely and patiently. I have been calling the Bearish side for EURUSD for the past couple of weeks and I'm still on the same side. I think we haven't broken out the resistance area yet because for that we need to see the weekly close above 1.16400 to confirm the breakout. Until then I am bearish and I expect the overbought Euro to come down for some correction in the near term. First support lies at 1.14600-1.14700 with a break below that will trigger the move towards 1.13600. On a break below 1.13600 we can consider that EURUSD has made the medium term top and price is going to correct further below with targets 1.11000-1.10000. Risky Traders can sell the pair now before the press conference and target 1.1200.
Recommendations(for aggressive traders): SHORT with no stop loss. Targets at 1.13600, 1.1200 and finally 1.10500.
Recommendations(for aggressive traders): SHORT with no stop loss. Targets at 1.13600, 1.1200 and finally 1.10500.