As we analyse EURUSD, yesterday we told that in order to go down first we need to break down 1.0905 – 1.0885 band below yesterday evening. Also price went down below this level, buyers got into arena and EURUSD tested 1.0940 level.
Now as we write this article price is at 1.09291. We keep the same view that to be in a SELL position, first we have to go below 1.0885. Also USD Index should be up. If so, we can see 1.0855 – 1.0820 levels. If not 1.0970 – 1.1005 would be the target.
In the third trading day of this week, it is a positive signal that, USD Index supported 34 days exponential MA and began to stay over this level. This attitude will create a bearish pressure on EURUSD. But it is not safe to trade with just this signal, we should keep on studying other data. Because of this, we should keep our eyes on the top level of the down trend of 4Hrs chart. And that level is 97.73. Again we have to keep in mind that, to be in a SELL position in EURUSD, USD Index should get over 97.73.