This evening the US reports the next round of GDP and initial jobless claims data. Initial jobless claims is expected to decrease to 380K and GDP is expected to rise 6.4% annually. With this in mind the USD could set up a bullish breakout from a possible bull flag structure. Keep in mind, if US economic data continues to improve, it will put pressure on the FED to cut bond purchases sooner. The EURUSD is the exact opposite and is possibly setting up a bear flag structure. Since the covid-19 pandemic “recovery” the USD has been moving in the opposite direction to the US stock market. Therefore if the dollar breaks to the upside tonight we can expect a risk off scenario in the market.
DXY 1 Hour Charts
EURUSD 4 Hour Charts
The rising channel structure has been broken and there has been retest from the new resistance line. There is another technical structure around 1.1790.
EURUSD 1 Hour Charts
Trade Setup: SELL STOP – Entry price 1.1914, stop loss 1.1994 and take profit 1.1790.
Stop loss: 90 pips
Take profit: 124 pips