Daily: The medium-term bias has flipped to the upside. However, last week’s Marabuzo level is seen at 92.00. With the index failing to hold above that level, and a Doji-style candle being posted on the daily chart, there is scope for another mild correction today. Although this can be played either way, we would look at this as an opportunity to buy USD.
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Source: Saxo Bank
Intraday (30 minutes): We have bespoke support at 91.50 and the 50% pullback level from the last rally at 91.53. With this also being a congestion zone, this is our prime support zone to get long of USD.
We posted a report on Monday
with PIA-First looking to buy dips at the 1.1950-40 area. We have now seen a corrective bounce from this zone. We expect upside to be limited and now look to sell into rallies.
Monthly: Posting little net change last month as EURUSD consolidates close to 1.2000, an area that has been pivotal since 2004.
Weekly: Buyers returned close to last week’s Marabuzo level of 1.1943.
Daily: Two Evening Doji Star formations have been posted from the last two swing highs as we try to establish a top.
Intraday (four-hours): Bearish divergence seen on the four chart (chart makes a higher high while the oscillator makes a lower high). This often leads to a trend reversal or at least a correction lower.
Intraday (30 minutes): With the first bearish five waves now assessed as being complete, we are in the corrective formation higher. Expect trading to be mixed and volatile.
Bespoke resistance is seen at 1.2014. With this being between the 50 and 61.8% pullback level, and a previous congestion zone, this is our level to get short.
Entry: selling EURUSD at 1.2014.
Target: 1.1868 and 1.1730.
Time horizon: medium term.
— Edited by Michael McKenna
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