EURUSD used USD weakness to climb above its 200 SMA line again, closing below the important 1.14 resistance zone. DXY (Dollar Index) is sitting on top of its daily 200 SMA line, a support line that will decide whether USD will resume its strength or start a deeper correction move. Thursday's Fed's announcement should determine the fate of the USD for the near future and it will probably determine whether EURUSD will manage to break out of 1.14 or not.
In this week's newsletters, I tried to look at potential targets for EURUSD breakout and from the weekly chart we see that 1.18-12 is a weekly structure zone that may be where EURUSD will head to in case of a breakout. Another potential target, longer term target, is the 1.24 zone (see weekly chart).
Now that EURUSD closed above the 200 SMA line again, the critical support zone shifts from 1.1 to 1.12.
I've marked two possible trading scenarios that I intend to monitor during Fed's week. Both of them bullish, one includes a small pullback towards 1.12,
The potential target zone is 1.18 and the completion of the bearish Crab
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - goo.gl/4z09V2
Seems like we're on the same wavelength recently...
Have pending orders to go long on a retracement there as well, except a bit lower.
Target: 1.2165.
themarketzone
⋅
There's a conflict between my bullish view on EURUSD and bearish view on GBPUSD. Both of them facing major resistance. I guess that eventually they'll both move in the same direction.. the question is which direction.
IvanLabrie
⋅
Yes, EURUSD's upside is corrective, athough it can last for a considerable amount of time based on my time at mode signal.
Ultimately direction is down, check out my quarterly and monthly signals:
IvanLabrie
⋅
GBPUSD:
themarketzone
⋅
Reached resistance zone. Testing 1.14 now.
I think we will see that pullback towards 1.12. Trying the short position.
themarketzone
⋅
Nice R/R here
IvanLabrie
⋅
I got out at almost BE today. Found a bullish signal confirmed yesterday. Can be a short a bit higher.
Read this week's newsletter - goo.gl/l0lbwD