EurUsd - How long will Risk-On sentiment last?
Updated
Hello traders.. For EurUsd we observed a very nice swing to the upside over the previous day of trading as decent Eur data beat Usd data for services and manufacturing PMI. We saw initial upside with the Eur data shortly after London open and this was followed by a pullback. Only until more data was released during NY session , we were to see another bounce to the upside. Risk on sentiment was the name of the game today as the Dollar index sold off with the Bad USD data. This was also coupled with a descending Vix and rising U.S. stock indexes leading up to and with the Bad USD data. The monthly candle is currently pulling back up. The weekly candle has shot past the previous weekly high by about 15-20ish pips. The Daily candle closed strongly bullish today, suggesting some more upside moving into this next day of trading.. we have no news in the upcoming session. Asian has pushed up slightly to begin the day. Key prices to watch in the upcoming session 1.0701, 1.06936
Note
it appears that a bearish scenario may be playing out in which we see 1hr candles close (and also the 4hr candle possibly in 6 minutes) below the 1.06936 1hr zone. Price is doing a restest of the 1hr zone after closing below it, possilby preceding more downside towards the daily level 1.06727.. and possibly a deeper retracement towards the 4hr zone 1.06546. If we get to 1.06727 daily level we must observe how price reacts. 
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.