EUR/USD Looks Stronger After Trump's Speech

January 23, 2017 08:29

The EUR/USD failure to break below the bearish Wolfe Wave that was indicated on Friday was caused by Trump's protectionist speech that weakened the USD. He also failed to provide any strong cues regarding infrastructure spending. Technically that failure to go below 1.0590 was the clear indication that the sentiment has changed in now moment. 1.0720 is now a support zone with a bullish order block confirming it. Watch the reaction off 1.0720 zone although it is a shallow retracement (H3,23.6). The stronger POC zone is 1.0675-90 (L3,61.8, bullish SHS trend line, L3,ATR pivot). Inverted Head and Shoulders (Bullish SHS) additionally supports the bullish outlook for the pair. Target is 1.0760 and sustained momentum and/or 4h close above 1.0760 targets 1.0790 and 1.0820.

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