EUR/USD: Recovering from previous day’s losses, heading towards our bullish target at 1.1270
Trading idea: Bullish targeting 1.1270. Wait for confirmation for larger trades.
Technical analysis: The pair danced all the way up to a key resistance level at 1.13 and now moving back down towards the Ichimoku cloud. The RSI is heading up towards the oversold area, but the MACD line is flattening
Economic Perspective: The Economic and Financial Affairs Council (ECOFIN) is meeting in Brussels all day today. On Tuesday’s London session, we saw some improvements backed by another sell off in the German debt markets and the subsequent raise in yields all along the curve.
There are no scheduled releases in Euroland today, and have minor announcements from the US during New York session. A higher than expected GDP release from Germany on Wednesday could push the Euro higher. We also have the US retail sales on Wednesday.
Alternative Scenario: If the pair is unable to break inside the Ichimoku cloud or the pivot zone, look for further upside back to 1.13 above 1.115
Where I’m setting my stops and limits: