General Market Commentary: Frothy markets returned yesterday as exchanged rate spiked in tight ranges for most of the day, but in general USD weakness continued and we expect it to continue. The US dollar is oversold at the moment, however, and we would feel much more comfortable shorting it if a correction were to cool off the oversold levels. We are staying flat today, all pairs, heading into the weekend to avoid the Friday volatility spikes (and a lack of quality S/R levels on most pairs.
Yesterday’s EUR/USD Signal Result: Our long was triggered on the 1.3805 resistance break yesterday, which jumped 16 pips into the profit before bears sold the exchange rate back down, kicking us out of the trade on the subsequent false break alert for a 18 pip loss.
Today’s Signal: We remain short-term and medium term bullish on the pair as it continues to make higher highs and higher lows across the charts, though we will stay flat today as 1.38-1.3820 continues to exert selling pressure on the pair mixing the 4h technicals. Combine that with the fact that it is Friday (higher volatility) and we will stay flat heading into the weekend and look to re-evaluate on Monday. Aggressive traders could look to buy dips into the 1.3750-1.3770 support zone for a re-challenge of 1.3820 before the weekend.
EUR/USD Hourly Chart" title="EUR/USD Hourly Chart" width="700" height="480">
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