Tough day for our expectations. We wanted to see a continuation in the EUR/USD pair. So far, the market has retraced 61.8% from the recent leg up that started last week at 1.3535 to Fridays highs of 1.3795. Trading at 1.3673 now, we want the market to stay above 1.3640; however, if broken, we may see a reversal in favor of the dollar strengthen and lead lower to the 1.35 area, testing 1.3430. Worse than expected economic data out of the US may help the dollar rather than hurt it as it will be a reason for traders to play the safe haven excuse on fears global economic recovery is fading. Were keen on the Asian and European session for further price action.
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