Good afternoon traders,
This morning we have seen a large sell off on the USD and JPY with strength returning to the AUD and NZD.
This week there is a huge amount of data coming out from numerous area. Firstly we are seeing the big guys report Q1 earnings, all eyes will be on Amazon, Microsoft, Apple, Google and Facebook. The results will begin to come out towards the end of the week. These stocks have been used as a safe haven as the demand for tech stocks has remained high, as well as Amazon pricing out their competitors.
We are expecting the stock market to continue to rally into the earning. Towards the end of the week we could see a potential reversal depending on the results.
We will also see more unemployment data and Q1 GDP from the US.
The DXY has seen a large rejection and a brake of a key trend,
The USD has seen double top rejection followed by a break to the downside of a channel. We are now looking at further downside on the USD for the first half of the week.
EURUSD Technical Analysis
The 4 hour charts has seen another break of a negative trend formation.
The RSI continues on an inclining support zone.
EURUSD 1 Hour Charts
Trade Setup: BUY Market order (Current Price 1.0842). Stop loss 1.0800 and take profit left open to run.
Stop loss: 42 PIPS