As I have been telling the traders for the past couple of weeks that EURUSD is looking for a move down towards the support area I mentioned in the chart. The last week was positive for EURUSD because of the slip in the NFP figures but the pair couldn't break my mentioned resistance area and got rejected again. The figures came 138K which were below the expectations but markets are still supporting the hike in June for the US central bank and so do I. But before that we have two big events coming on June 8, The UK Parliamentary Elections and ECB interest rate decision but more important than the interest rate decision would be ECB's monetary policy statement and press conference by Mario Draghi. A hawkish tone from Draghi can take the pair to higher levels whereas the dovish tone will do the opposite. Traders need to be cautious as ECB's press conference could be a game changer for EURUSD. ECB's Inflation target is not achieved yet and the last month's inflation data came below expectations which might push Draghi to be dove rather than a hawk. From a technical point of view we have clear BEARISH divergences in the momentum indicators as I mentioned in the chart. It is highly unlikely at this point that we are going to break above 1.1330 because we haven't seen a bigger correction for a very long time. The rally has already ran out of steam and the pair looks unable to push beyond 1.1330. I cannot be Bullish on EURUSD from current levels and so is my advice to the other traders.
TODAY's RECOMMENDATIONS: Sell the pair at current levels (1.1250) with stop loss above 1.1320 and targets should be at 1.1080, 1.0950 and finally 1.0840.
Keeping that in mind I wish you Good Luck in your trading :)
TODAY's RECOMMENDATIONS: Sell the pair at current levels (1.1250) with stop loss above 1.1320 and targets should be at 1.1080, 1.0950 and finally 1.0840.
Keeping that in mind I wish you Good Luck in your trading :)