UP NEXT:
- No red news tonight but we do have several yellow releases, which whilst not expected to provide much volatility, they do help build a picture of overall economic health for their respective economies.
TECHNICAL ANALYSIS:
EUR/USD: Within congestion but upside pressure may be building
If we consider that the EUR/USD has managed to hold above key support in the face of weak data recently then this further suggests an interim bottom is in place.
Next resistance is the sloping resistance, followed by 1.3444. However we may be able to assume a breakout above 1.3373 support to anticipate the breakout. We can see that whilst price has been capped by the sloping resistance that higher lows have been set to suggest buying pressure at the lows.
EUR/JPY: Trading the Bands
The original setup was posted last Monday, and whilst it dragged its heels, the levels and direction worked out accordingly. After seeking the pullback to 136.30 price did drift up and achieve the target at the upper Bollinger Band.
Today's idea is exactly the same but in the opposite direction, as we have seen a Bearish Pinbar at the upper Bollinger Band and we are now seeking to trade to the lower Bollinger Band.
To increase reward / risk ratio I would prefer to sell into any rally within the body of the Shooting Star and target 1.3630 support. Also note that on this occasion we are trading in line wit the bearish trend.