EURUSD posted a low at 1.1165 on Friday as the result of UK Elections and ECB's inflation target not to be met. Since the pair made the low it has been trading upwards and maybe providing a final opportunity to Sell. EURUSD couldn't break much lower on Friday as the investors are waiting for fresh impetus to break lower or higher. And Wednesday would probably that day when would see a breakout of one side and I expect it to break lower instead of higher. Focus is now shifted on FED's dot plot and Press conference by the Chairwoman Janet Yellen on Wednesday, June 14. The dollar index on Friday broke above the short-term resistance and settled above it which was the first Bullish sign for DXY and the bearish sign for Euro. Right now Dollar Index is trading lower which helps the EURUSD to visit some of the daily highs but I hope it won't last long as the bigger correction in Euro is due and I don't expect a move higher before a new leg lower. I have been telling the traders for the past couple of weeks that it is not the time to be Bullish on EURUSD. From a Technical point of view first strong resistance lies at 1.1260-1.1290 where we have been seeing high selling pressure for the past couple of weeks. Next resistance lies at 1.1330 an old pivot level, above which there is no resistance till 1.1400. Support is at 1.1160 (Friday's Low) and the next ones lie at 38%, 50% and 61.8% retracement levels respectively as mentioned in the chart. I expect a move towards at least 50% Fibonacci Retracement if not towards the Cloud support. I am BEARISH on EURUSD and not going Long until it corrects lower.
Recommendations: Place your Short positions from the current levels (1.1220) and stop loss above 1.1290, set the target at 1.1080 at least.
Good Luck...
Recommendations: Place your Short positions from the current levels (1.1220) and stop loss above 1.1290, set the target at 1.1080 at least.
Good Luck...