EURUSD, Buy at 1.2377 and 1.2346 (stop 1.2314), Wednesday

7 feb 2018

Trading was volatile in EURUSD Tuesday. An early positive reaction to 2 days of strong selling saw a bounce from the 13 day mvg avg that lacked the momentum to test Monday’s highs. But a renewal of selling interest was unable to maintain levels below the 13 day mvg avg and a Marabuzo line created Jan 24th. The result was limited net movement and a stalling around the average. This price action does not provide strong signals for sentiment but our call for this morning is a Cautious Buy from 7am but leaving room to also Buy any Dip to 1.2346. The risk is 1.2314, yesterday's low, with an immediate target of 1.2403. A move through that point then exposes sentiment to 1.2434, yesterday's top, and towards this week's 1.2476 high.