EUR/USD- From the past couple of weeks we are witnessing both side whipsaws where bulls and bears are fighting for their side, eventually pair is trading and moving in a symmetrical triangle pattern. On Monday it rose almost 0.91% and the biggest gain since the last 8 weeks. The range has been breakout and it opens the way towards the next hurdle of 1.1000 level and furthermore.
On the bigger picture pair is moving in the short term consolidation phase of 1.0920 to 1.0770 level so positional traders are advised to stay aside and wait for the clear breakout on either side whereas aggressive traders can take the benefit of demand pressure.
Fundamentally- EUR/USD feels the pull of gravity amid the escalating us-china tensions, US President Trump threatens to block funding to WHO, while China accuses Trump of witchcraft. On the data front, the focus will be on the German ZEW survey for May, and Fed’s Chair Powell testifies.
Technically: – On an hourly chart a bullish flag pattern has been posted which is providing us a bullish signal. The daily outlook suggests to positional traders that sit aside and wait for a clear breakout of the symmetrical triangle at 1.0950 with a full volume candle. If bulls trades and settles above 1.0950 then we may see buying till 1.1020 and 1.1100 level in coming trading sessions on contrary if bulls unable to sustain above 1.0870 then we may see downfall till 1.0825 and 1.0770 level.
Also, 1.0990 would not be surprising but for today, 1.1050 is likely out of reach for the day. Odds are in favor of bulls and daily to weekly bias remains bullish on the pair as long as 1.0820 level remains intact on a closing basis.
Trade idea:- Buy at 1.0900-905 target is 1.1000 and 1.1100 with a tight stop loss of 1.0825.
