Euro/Dollar is in a consolidation for the last week. Trading range is 1.3417 - 1.3733. Both end zones are sufficiently strong at present, indicating that the market looking for direction catalyst for next movement direction. Stock markets do not give straight signals. After the serious increase on Monday, on Tuesday the currency couple sharply dropped. This may be correctional movement, but the upwards momentum could be depleted, especially if using the stock as an initial signal for the currency market. Dollar index indicates the beginning of upward movement, which as we know means strengthening of the Dollar against all other currencies too. Clearly visible are the rising bottoms from the last 3 days and yesterday's candle. Technical indicators come out of the oversold zone of and start moving upwards. Possible scenario is a decline in stock markets, combined with strengthening of the Dollar. This will continue to maintain existing relationships between the various instruments.
Technical resistance levels: 1.3675 1.3800 1.3950
Technical support levels: 1.3440 1.3320 1.3210
Trading range: 1.3610 - 1.3545
Sell at 1.3598 SL 1.3628 TP 1.3558
Yesterday we made +12 pips profit on EUR/USD from the following signal:
5:45 GMT Sell EUR/USD at 1.3465 SL 1.3491 TP 1.3415 exited at 7:28 GMT
Total yesterday +117, as shown at www.zifx.com/performance.php