Last week we took profits on managed accounts from long and short positions in EUR/USD. So, let’s analyse what we should expect to happen this week.
I think all bad news from Europe are already priced in, as well as all positive from US. Last week GDP data was released and showed 3.5% beating all expectations. But dollar could not hold it’s gains. Well, I think USD has to pay hard price for recent equities sell off. Investors are afraid to put more money into US (at least before elections).
Technically EUR/USD trades near daily support and I don’t see any fundamentals to break this support and bring pair to 1.1100. So, based on Friday’s price action I expect market will start it’s journey to daily resistance above 1.1800.
On Monday I think we will see zig-zag move and one more push up to reach 1.1460. Those, who don’t have positions, should wait for pullback to 1.1380. This level was recent resistance and now should act like support. Targets 1.1600, 1.1750, 1.1800 and 1.1900 in extension.
As always, I want to remind you to watch price action and wait for confirmation instead of placing blind pending orders.
Good luck and good trading!
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