3:17a GMT - Hello PipHutters! No trade entered on yesterday's signal as the pair bounced around between 1.4550-1.4475 yesterday as bulls struggled to keep their gains to open the week. The dollar rose sharply to begin the week as the Fed once again all but guaranteed that they would keep interest rates at historic low levels for the foreseeable future. As long as the global economic picture looks stable this will drive risk appetite which will then drive investors to the higher-yielding Euro (net result: EURUSD bullish).
Daily Outlook: There are a lot of ifs in that statement but I believe the fundamental picture, as cloudy as it is, supports USD weakness in the near term as long as global economy stays stable and, given the recent break above 1.4500 resistance, I am bullish on the day. I will look to buy on dips with candlestick confirmation, with the support zone between 1.4435-1.4400 as the first support zone. Mind the trade balance report at 13:30 (news details here).
Trading Idea: My preferred support to buy at will be 1.4410, the 50% retracement of the Jan 8-Jan 11 rise. I will put my stop below 1.4370, the 61.8% retracement. Long targets (from 1.4400) are 1.4435, 1.4470, 1.4500 and 1.4540.