Today we look at the $EURUSD pair following the US inflation data released yesterday. First of all, I share this idea with you based on my analysis about the Dollar Index ( $DXY ) which you can see below, that said, we know that there is an inverse correlation between $EURUSD and $DXY, so if we have a bullish view on the dollar, we need to have a bearish view on the EURUSD pair (see chart below).
From a technical point of view, looking at $EURUSD it is possible to have a "Head and Shoulders" formation in the mid-term, and if this analysis is correct, the first bearish leg should reach the 1.05 area and subsequent technical rebound developing Right Shoulders. At the same time, we should develop something like ABC Pattern for EW Traders. In conclusion, we must not forget one very important thing, the trend on the daily chart is bullish, so going short on this pair is risky at the moment, so you need a small size and good Money Management... but this is just my opinion...
Today we have Retail Sales to follow, and if we look intraday chart we see an important support area around 1.067, if it fails, our potential neckline area should be reached, conversely, we will see an important technical bounce, let's see what happens. #OPINIONLEADER#
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