The Euro got caught up in the ECB stability announcement along with the DAX 30 it saw a -0.74% drop at the tune of -82pips before a really-close to 1.1063. We believe this was used as a stop-hunt to take out sellers. The dip served as a signal to start selling the Euro, but banks after triggering seller’s into the market begin buying and creating demand on the market to move it higher. This triggered the sellers stops (which are buy orders) rallying the market higher.
Our outlook on the Euro has not changed, we are still holding our bias to the upside against the US Dollar. We expect one last move lower to 1.090’s region before a rally and break of the Daily Bullish Flag.
THE PLAY: Looking to buy the market on a 3rd test of the bottom of the flag pattern (between 1.0970 to 1.0960 region) to move to the top of the pattern for a potential breakout to 1.1200
Our outlook on the Euro has not changed, we are still holding our bias to the upside against the US Dollar. We expect one last move lower to 1.090’s region before a rally and break of the Daily Bullish Flag.
THE PLAY: Looking to buy the market on a 3rd test of the bottom of the flag pattern (between 1.0970 to 1.0960 region) to move to the top of the pattern for a potential breakout to 1.1200