Last week, we saw a lot a weakness in the dollar as a result of FOMC statements above upcoming, expected rate cuts which caused Gold to explode and the $ to crumble. The EUR/USD has broken out of the descending channel it has been in for the past few months.
After the breakout, it touched off of the 0.618 fib ret and couldn't break above this point with 2 daily candles closing below this point. Because of this, I will be waiting for a retest of the upper descending trendline and former resistance. I need to then see a rejection of this confluence area before going LONG to the 1.272 fib ext level; also a support level. Be patient and wait for bullish momentum after the retest. Consider fundamentals before entering.
After the breakout, it touched off of the 0.618 fib ret and couldn't break above this point with 2 daily candles closing below this point. Because of this, I will be waiting for a retest of the upper descending trendline and former resistance. I need to then see a rejection of this confluence area before going LONG to the 1.272 fib ext level; also a support level. Be patient and wait for bullish momentum after the retest. Consider fundamentals before entering.