Article originally published on innerfx.com and republished here with permission
Quote of the day:“If I had to live my life again, I’d make the same mistakes, only sooner.” ~ Tallulah Bankhead
Good morning. The week starts with euro pushing on intraday support formed by the median retrace value of Friday’s rally, at 1.4350 – see hourly chart below. I reiterate my view that it’s probably best to sell on rallies and weakness, as noted in my Friday report. In case you missed it – some interesting setups, including a quick analysis of EURUSD, are shared in my previous report – posted yesterday. Now let’s take a look at the hourly charts to see what to expect in the next trading sessions:
As you can see above, recent rallies towards 1.4450-1.45 have been sold. Since we are testing support right now, it’s best to wait for the market reaction and either sell on break of support or buy if support here will be confirmed. Personally I’d prefer the short scenario but it’s worth to consider the buying alternative if this is only a correction.
Support around .8650 is still intact but I believe there’s more downside action to be seen in the coming days. Therefore, I remain bearish on EURGBP – as long as we stay below .8800 – .8900 top zone
Former resistance should provide support now, so buying dips seems a good idea