Mixed signals for EURUSD currently. Wednesday’s strong profit taking decline was not extended yesterday but the resulting renewal of demand was limited. Net gains reversed only half of the previous day’s net fall and, despite the backdrop of a rising channel, this means that immediate studies are more difficult to analyse. Nonetheless, Asian gains have indicated a positive bias for this morning that means our call is a Buy from 7am but leaving room to also Buy any Dip to 1.2232, Asia’s low. The risk is 1.2194 with an immediate target of 1.2292. A move through that point then exposes sentiment to this week's 1.2323 peak or even 1.2352.
Comment:
EURUSD Reaches 1.2292 Target/Raise Stop - Demand has now yielded our 1.2292 target. The next objective is 1.2323, the stop is raised to 1.2256 and the buy dip strategy is cancelled.