DXY (the USD Index) completed a one-hour bearish BAT formation at 102.36.
The six-hour chart highlights an Expanding Wedge formation. With the trend of higher lows located at the same level as bespoke support, 101.47 could be a substantial downside barrier.
On a clear break of this support zone, the measured move target is 99.10.
Using correlation this offers EUR/USD an upward bias.
EUR/USD - the four-hour chart highlights a bullish Ending Wedge formation. On a break of 1.0997, the trend of lower highs, the measured move target is 1.1149.
Conclusion: The US Dollar bias has flipped to bearish ahead of tomorrow's inflation figures. Although there is scope for mild selling at the open, in the EUR/USD pair, with support located at 1.0966, we would look for dips to be minimal.
The six-hour chart highlights an Expanding Wedge formation. With the trend of higher lows located at the same level as bespoke support, 101.47 could be a substantial downside barrier.
On a clear break of this support zone, the measured move target is 99.10.
Using correlation this offers EUR/USD an upward bias.
EUR/USD - the four-hour chart highlights a bullish Ending Wedge formation. On a break of 1.0997, the trend of lower highs, the measured move target is 1.1149.
Conclusion: The US Dollar bias has flipped to bearish ahead of tomorrow's inflation figures. Although there is scope for mild selling at the open, in the EUR/USD pair, with support located at 1.0966, we would look for dips to be minimal.