From a fundamental perspective, USD data was mixed, if not slightly weak after NFP. Additionally, Russia and China just signed a deal signaling that they will move away from using the USD for their trade with each other. At the moment that's more of a symbolic move, but symbolic moves still change charts.
From a technical perspective, late December/early January of 2015/2016 is a key time to look at for this pair. Very important examples of resistance and support there that outlined where I dropped my demand box. EU should follow the bullish trendline, but might slightly fake-break it, as it's done a couple of times recently. Still, the pair is on a bullish trend and has both near-term and long-term reasons that the lower 1.07000s should be a support zone.
From a technical perspective, late December/early January of 2015/2016 is a key time to look at for this pair. Very important examples of resistance and support there that outlined where I dropped my demand box. EU should follow the bullish trendline, but might slightly fake-break it, as it's done a couple of times recently. Still, the pair is on a bullish trend and has both near-term and long-term reasons that the lower 1.07000s should be a support zone.
Comment:
EURUSD reversed at almost exactly the bottom of our supply box at the 0.786 line. Currently up about 45 pips. If you took this trade, consider taking profit at 1.07700 as it tests the descending trendline. If it breaks that trendline, look for a last kiss for a reentry and ride this all the way to 1.08400.
Comment:
Correction, consider TP at 1.07550. Then watch for trendline break.
Comment:
TP of 1.07550 hit. Watch trendline now for cross and last kiss for reentry.
