EURUSD - A Healthy Pull Back.
Updated
EURUSDEURUSD has rallied nicely since mid-Jul when it broke out of the multi-year resistance of ~1.15. It has since rallied 300+pips to 1.188 before a retracement kicked in. On the other hand, DXY has also pulled back after hitting 92.65 region. Both the EURUSD & DXY pullback towards their 20EMA, and exhibited signs of rejection (wicks in candles) around the 20EMA area.
This leads me to lean towards the bullish trade for EURUSD. I am expecting a base to build around 1.175 area before the pair's continuation towards the previous high of 1.188. In the medium term, resistance remains ~1.20 level, which coincides with the fib extension level. Look out for this pair!
PS. Geo-political situations (Trump vs North Korea) or any form of scandals from Trump administration would help our cause as it would likely lead to a weaker dollar generally.
Note
base forming around 1.17 level, however it's looking to test the downside than a bounce up. i would invalidate this idea when prices head downwards of 1.1665.
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