Good evening team,
The DXY is coming under pressure, possibly due to the risk on market sentiment leading into the FED Jackson Hole tomorrow morning. The Jackson Hole Economic Policy Symposium was cancelled, at least the in-person meeting, slated for 26-28 August. A virtual meeting will be held instead on the 27th of August. But the cancellation of the in-person meeting is being taken as a sign by a majority of analysts, and possibly by the markets that tapering – or talk about tapering – will be pushed back, which is a green light that the euphoria in the market can continue. Therefore we see the possibility of a weaker USD leading into the announcement over the next couple of days. There has already been a breakdown from the rising wedge structure, followed by a retest (check telegram)
EURUSD 1 Hour Charts
Trade Setup: BUY Market Execution, current price 1.1755, stop loss 1.1695 and take profit target 1.1850.
Stop loss: 60 pips
Take profit: 95 pips