I hope you all had a great weekend. Last weeks analysis was right on spot, all the predictions we made came out as expected.
This week is going to be interesting as there are lot of important fundamental news releases that will act as catalyst for market movement.
Let’s look at EURUSD weekly chart:
Last week we expected price to reach the lower Trendline and so it did. Now we are expecting a pullback up from this level. In case there is a Breakout below this Trendline, then we will wait for a confirmation on the daily chart and look for shorts on the re-test of this Trendline.
On the daily chart price seems to be moving in a channel. When market opened today it gapped up and most likely price will come down to fill the gap before heading up towards the upper Trendline.
Keep an eye on New Home Sales from US later in the day. There is no other news impacting Euro and Dollar.
Forex Trading Signal : Look for longs once the price has filled the gap around 1.3240-20 area, targeting 1.3450. No signal for short side at this stage.