Today’s call – EURUSD – We look to Sell at the 7am open stop at 1.3885

USD Index – The dip was bought and the rally sold yesterday resulting in the index posting little net change by the close. Two important factors offer a bullish bias going into today:

1. The intraday chart highlights buying below the 61.8% Fibonacci level of 79.65 (from 79.38-80.06)
2. The daily chart is highlighting an exhaustion count.

EURUSD – The rally was sold close to the trend of lower daily highs (from 1.3966-1.3905) but the dip was also bought inside the daily Ichimoku Cloud cover. The net result was mild net daily gains. Looking to the intraday chart and price action has been mixed and volatile, common in corrective patterns. The rejection of gains at the trend combined with the daily chart posting an exhaustion count still offers a bearish bias going into today. Further upside pressure should be limited. We look to Sell at the 7am open stop at 1.3885. Our profit targets are 1.3824 and 1.3767.

Resistance levels: 1.3870-8, 1.3905 and 1.3966