EURUSD Daily Analysis: German inflation numbers came in as expected (0.8%), US GDP got revised upward (4.2%), US pending home sales beat expectations, and German unemployment did slightly worse than expected. All this has led to a continuation of the technical downtrend (fundamentals matching the trend – who would have thought?) as price has found strong offers under 1.3220, pushing the price back down under 1.3170.
Technically the downtrend remains firmly intact, with a break below 1.3150 to once again put the gas on the bear pedal. Oscillators remain oversold with a strong RSI bullish divergence, but that will happen in a strong trend. It seems that markets keep waiting for a correction but we will continue to trade the trend until we see evidence it is turning, which at this point would mean a break above 1.33.
Our Preferred Trades*: We are looking to get short on rallies with bearish candlestick confirmation, anywhere between 1.3220-3290, targeting back down to 1.3150 and 1.3100.
Yesterday’s EURUSD SwingPRO Signal Result: No trades triggered yesterday.
Today’s SwingPRO Signal: Short on support breaks.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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