EUR/USD Intraday Idea
Short around 1.1950
Broken and re-tested flag pattern, Wave 3 of downtrend about to begin.
I'm bullish on the dollar until we hear what FOMC say. A lot of inflationary pressures in the US and treasury yields just breached their recent high around 160bps. Stimulus cheques drop this weekend which will add fuel to the fire. The market has already priced in several rate hikes. DXY had a 0.5/0.618 retest of its breakout movement on Friday and is on the edge of the demand zone which created the bullish movement. Euro I expect to reach daily demand 1.1750/1.17 eventually. I note the channel retest and overextended M formation, of which we just completed the retrace leg. I also note the general ranging/uptrend of Euro fixed income following the ECBs PEPP program, which will create bearish pressure on Euro.
Broken and re-tested flag pattern, Wave 3 of downtrend about to begin.
I'm bullish on the dollar until we hear what FOMC say. A lot of inflationary pressures in the US and treasury yields just breached their recent high around 160bps. Stimulus cheques drop this weekend which will add fuel to the fire. The market has already priced in several rate hikes. DXY had a 0.5/0.618 retest of its breakout movement on Friday and is on the edge of the demand zone which created the bullish movement. Euro I expect to reach daily demand 1.1750/1.17 eventually. I note the channel retest and overextended M formation, of which we just completed the retrace leg. I also note the general ranging/uptrend of Euro fixed income following the ECBs PEPP program, which will create bearish pressure on Euro.
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