pair moved quiet positively since it has made the low in the January. Trend looks bullish
for the past couple of months. The pair created a gap of almost 100 pips on April 24, when the currency markets were opened and that has become a strong support area
since then. The EURUSD
pair did not see the correction and is moving upwards since then. Now the pair has reached the important resistance level
at 1.1260-1.1300 which needs to be broken for further upward momentum and that seems highly unlikely as I am expecting USDX to recover this week which will ultimately push EURUSD
pair down. USDX is at the critical cloud support and indicating a bounce which will be BEARISH
. As you can see in the chart that Stochastic
both are giving string bearish
signals. Whenever the Stochastic
overlaps, this indicates the opposite move is coming. As I clearly indicated the history of Stochastic's relationship with EURUSD
pair move and that definitely makes sense. Keeping that mind I would suggest traders to sell EURUSD pair at current levels with the stop loss at 1.1400 with the targets at 1.0950, 1.0850, 1.0720.
Wish You Good Luck.