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.
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