Yields on core European bonds went for a slide yesterday as prices rose in response to the ECB's decision to leave its QE programme unchanged – for now at least. Elsewhere, the USD continues to make gains on its peers.
Day trade
Trade view / 13 June 2016 at 6:53 GMT

Bounces to be limited in EURUSD

Analyst / PIA First
United Kingdom

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
USD Index

Source: Saxo Bank. Create your own charts with SaxoTraderGO click here to learn more

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. 
 Source: Saxo Bank

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. 
 Source: Saxo Bank

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. 
 Source: Saxo Bank

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


Entry: Selling at 1.1295

Stop: 1.1335

Target: 1.1220

Time horizon: today

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more


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