Daily Outlook: Happy August PipHutters - the EURUSD basically formed as a doji on the weekly chart last week, closing just 12 pips below the open price after 5 days of trading.
While on its own this appears to be a bearish signal the pair has a lot of bullish momentum right now and and we will continue to look for bullish opportunities as long as the pair stays above 1.4350 (poll question below) on the day. If the daily charts see a sustained break above 4550 on the day then we expect the upside to be accelerated in the coming days with an eventual re-challenge of 1.50.
Trading Idea: We are a bit weary of any trades right now as we feel that the pair needs a bit more technical direction, but as mentioned above we will look for long positions on any dip to 4350, and in general are bullish above that level. Targets from 4350 include 4375, 4400, 4430, 4460 and 4490 for 140 pips potential.
There is also an opportunity for an aggressive short below 4350 with targets at 4325, 4300, 4270, 4240 for 110 pips.
Happy Pipping all, and don't forget today's poll question: do you think the pair will dip to 4350 today?