Trade view /
13 June 2016 at 6:53 GMT
USD Index – Some overnight buying in the USD index but we have stalled close to the June 3 Marabuzo level of 94.80. Scope for a mild correction this morning but we look for dips to be bought into.
USD Index Daily - Stalls at Marabuzo
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Concentrating on EURUSD today:
The monthly chart highlights the pair in a channel formation. Bearish Outside month in May offers a downward bias once more. We look for a long-term target close to 1.0047-0.9898. This is the Fibonacci confluence area.
The daily chart highlights an expanding wedge that has a bias to break lower. A Bearish Outside day from the Ichimoku cloud top offers a downward bias. Cloud support is located at 1.1220 so risk/reward would be poor to sell at the open.
Intraday and we have broken a wedge formation and accelerated to the downside through the Marabuzo level from June 3 at 1.1255. However, signals are now oversold so the preferred trade is to sell into rallies.
Market Profile has the Initial Balance (IB) below Fridays Value Area (VA) suggesting that we should see a downward trend today.
Our bespoke resistance levels are at 1.1283 and (prime) at 1.1297. We have set a limit order to sell.
Management and risk description
Selling at 1.1295
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more