A kick in the teeth with the AUDUSD, SL was taken pretty much to the pip this morning.
We are taking a look at the EURUSD as this pair should benefit the most from a weaker greenback.
This morning the FED confirmed interest rates would remain at record lows for the foreseeable future along with QE (money printing). Therefore we see a weaker USD playing out over the coming weeks, which should play nicely into our GOLD long trade.
DXY – 4 Hour Charts – Pre Announcement
DXY – 1 Hour Charts – Post Announcement
The DXY is resting on a key support zone at 91.40. Once this level is broken we bears will be back in control and we expect the USD to continue falling towards 90.00 and beyond.
EURUSD – 4 Hour Charts
The EURUSD has broken out of a bull flag structure and is currently trading beneath the 1.2000 resistance zone which is our bullish level. Once the 1.2000 resistance is taken it will confirm the EURUSD correction has potentially finished, and the pair could be setting up for another bullish cycle higher.
Previously we highlighted the corrective structure on tradingview on the EURUSD
EURUSD 1 Hour Charts
Trade SETUP: BUY market execution, current price 1.1982, stop loss 1.1910 and take profit left open to run, first target is 1.2082 and second 1,2162.
Stop loss: 72 pips
Take profit: 100-180 pips
We will be looking to build into this position once the 1.2000 resistance is taken out.