EURUSD: Daily Price Action Suggests A Move Up
Looking at this pair it's been trading in a descending dynamic channel since mid-July, it makes up nearly 58% of the DXY index and so is in close negative correlation to this index.
We can see the on the daily a pinbar followed by a long-wick doji, which could mean reversal, the opposite can be seen in DXY:
We can now see a breakout of the channel, and the pinbar was formed on the restest, and now the long wick doji.
We have a lot of news this week affecting the Euro (Mon / Tues), and then the USD (Wed).
Overall I think that the price action is determining a weaker dollar which means stronger crosses for the next short period of time, dollar needs a rest and has failed to form a new HH yet despite economic news that would normally entice the bulls.
There will be volatility this week so being conservative with initial target, however depending on the news we could well see us back over 1.08 this month.
We can see the on the daily a pinbar followed by a long-wick doji, which could mean reversal, the opposite can be seen in DXY:
We can now see a breakout of the channel, and the pinbar was formed on the restest, and now the long wick doji.
We have a lot of news this week affecting the Euro (Mon / Tues), and then the USD (Wed).
Overall I think that the price action is determining a weaker dollar which means stronger crosses for the next short period of time, dollar needs a rest and has failed to form a new HH yet despite economic news that would normally entice the bulls.
There will be volatility this week so being conservative with initial target, however depending on the news we could well see us back over 1.08 this month.
Comment:
Looking good!
Comment:
First target reached
