The EUR/USD confirmed a strong closing yesterday forming a positive outside day reversal. We have now 1,3545 – 1,3245 now the levels to follow in the coming hours/ session. A daily closing above 1,3545 will support further strength suggesting a return for the EUR DOLL toward the 1,37 area. The monthly closing was negative but overall interior the previous months’ range.
The indicators of the daily chart are however still negative while those of the s/t ones turned all above the line following the important move up. In the hourly chart it formed already overbought conditions and of course potential negative reversals suggesting for the s/t some consolidation. We suggest however waiting for a short position because we expect a recover in some EUR crosses and this could support the EUR DOLL in the s/t.
We remain on the sideline while following the outside day!!
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FUTURE TREND RESEARCH