EUR/USD made a corrective move up last week as per my previous analysis and trading forecast. I don’t see any big fundamental changes that could influence the money flow and trend. Yes, US economy has many problems. But who doesn’t? Look at the EU. Besides, even economic growth in China is slowing. All this can support dollar.
However, we have to be more cautious now, as the trend will change. For now I don’t see any signs of reversal yet. So, look for good entry to short EUR/USD. On smaller TF we have a possible double top formation (not confirmed yet!!) and divergence. But price action seems to be not completed yet. So, I can’t exclude higher range before the next leg down. Our swing targets are still 1.11600 and 1.11200. I think for now it’s better to stick to smaller time frames with targets 1.12800 and 1.12000.
However, we have to be more cautious now, as the trend will change. For now I don’t see any signs of reversal yet. So, look for good entry to short EUR/USD. On smaller TF we have a possible double top formation (not confirmed yet!!) and divergence. But price action seems to be not completed yet. So, I can’t exclude higher range before the next leg down. Our swing targets are still 1.11600 and 1.11200. I think for now it’s better to stick to smaller time frames with targets 1.12800 and 1.12000.