Yet again, this has left the market floundering with no real long-term direction for the USD. Technical, we look to be forming a short-term pattern. This has an eventual bias to break higher. However, with no high tier American economic releases until Tuesday next week (Durable Goods), we are likely to see volatile price action in the dollar up until that point.
Reflecting this USD view back on to EURUSD and we should see a further move to the upside towards the end of the week and Monday.
Short term players should be looking to buy dips towards 1.1280-90, previous swing high (15th September) and trend of lower highs (Buy EURUSD at 1.1200 stop at 1.1160 target 1.1280)
Long term players should be looking to sell rallies close to 1.1280-90. This offers great risk/reward with the 1st target being the baseline at 1.1122. On a break the measured move will be 1.0875. (Sell EURUSD at 1.1280 stop at 1.1380 targets 1.1122 and 1.0875).