We have seen 250 pips move in EUR/USD last week and it was very strong after the breakout above the 1.40 level, after the strengthening of USD. So we are expecting this rally to continue upto its next resistance of 1.4215, which is a declining trend line’s upper boundary on weekly chart. So we will be looking for buying opportunities as long as the pair holds above 1.3955 level. Also on lower side we will be looking for selling when the pair looses the momentum as it will justify that it is finding the stiff resistance near 1.4215 level. So we may witness high volatility in this pair in the coming days.
As per our analysis we recommend you to place long orders in EUR/USD near 1.4165 for weekly target of 1.4215 and 1.4255 in extension. Also place protective stop loss near 1.4145 level.
Place short orders in EUR/USD below 1.4095 for weekly target of 1.4055 and 1.4025. Stop loss must be placed above 1.413 level.