With all the news and risk events that took place yesterday - a worse than expected CPI and retail sales, followed by a hawkish Yellen - some traders might have experienced some losses due to the 180 degrees change in sentiment; while some may have been left confused on the outlook of the US Dollar.
We shared this analysis on the US Dollar Index before all the news two days ago, and nothing changes, the analysis is still valid.
As for EURUSD, we believe that a fall in imminent. I'm not saying that it will fall immediately, nor that it is 100% guaranteed that it will fall. We are simply forecasting that there is a high probability that we will see a fall in EURUSD soon. Here's the rationale -
1) A RSI divergence is forming
2) Price action is inching up slowing, showing lack of momentum
3) Price has hit the minimum target for a wave 3 structure
4) Price seems to be forming a diagonal structure (wedge pattern)
Again, just my 2 cents perspective on the market. Always remember to trade according to your own plan and manage your risk.
We shared this analysis on the US Dollar Index before all the news two days ago, and nothing changes, the analysis is still valid.
As for EURUSD, we believe that a fall in imminent. I'm not saying that it will fall immediately, nor that it is 100% guaranteed that it will fall. We are simply forecasting that there is a high probability that we will see a fall in EURUSD soon. Here's the rationale -
1) A RSI divergence is forming
2) Price action is inching up slowing, showing lack of momentum
3) Price has hit the minimum target for a wave 3 structure
4) Price seems to be forming a diagonal structure (wedge pattern)
Again, just my 2 cents perspective on the market. Always remember to trade according to your own plan and manage your risk.
