Equity markets around the globe finished lower yesterday and into today’s US session, giving the USD strength against commodities and currencies across the board before the Dollar hit resistance and gave back much of the gains to most major currencies.
We continue to look to the EURUSD as the driving indicator for the direction of the Dollar and risk appetite as a whole, but without major news events expected until Wednesday’s interest rate statement, we are still anticipating a ranging, consolidating market before sentiment towards the FOMC’s neutral status drives more losses for the USD.
Daily Currency Pair Analysis
EURUSD: Last week we anticipated the EURUSD to bounce off of 1.4615–which it did early this morning. However, we anticipate this to be a long-term play so if you missed the move, await the EURUSD to return to the 62 EMA on an H4 chart or look shorter-term and buy on a break of 1.4766.
Potential Trade: Long EURUSD
Optimal Entry: bounce off 1.4615
Potential Stop Loss: 1.4450
Potential Take Profit: 1.4950
Potential Trade: Long EURUSD
Optimal Entry: break of 1.4766
Potential Stop Loss: 1.4700
Potential Take Profit: 1.4950
