The DXY - US Dollar Index has broken a channel that has been holding the upside for several weeks. This is a clear signal of Dollar Weakness to come.
From a fundamental perspective, this week the FED did not seem all too dovish in it's statement, but at the same time it was lacking the main component for broad based USD Strength - A clear signal for March. Similar to what the FED presented in November to prepare the markets for December Liftoff.
The EURUSD remains in an up channel on the 4H. Current momentum is bearish and strong on the day, so a reversal candle in the buy zone will provide some conviction of a slowdown in momentum before the trend change.
First Targets come in at 1.10 - once that level is taken out, the pair has scope for the 1.13 area
From a fundamental perspective, this week the FED did not seem all too dovish in it's statement, but at the same time it was lacking the main component for broad based USD Strength - A clear signal for March. Similar to what the FED presented in November to prepare the markets for December Liftoff.
The EURUSD remains in an up channel on the 4H. Current momentum is bearish and strong on the day, so a reversal candle in the buy zone will provide some conviction of a slowdown in momentum before the trend change.
First Targets come in at 1.10 - once that level is taken out, the pair has scope for the 1.13 area
