Forex FOREX PRO WEEKLY, June 12 - 16, 2023

[Sive Morten]

Morning folks,

So, next target is hit - DRPO "Buy" has completed minimal target, market now stands around 50% Fib level (not shown here), keeping bullish context valid. Next destination point is 1.09-1.0915 Fib area and oversold level.

Now I do not want to comment Fed statement - it is too many information, we keep it for the weekend. Just would like to say that it is not dovish at all, despite the pause. Now all eyes on ECB.

Despite that EUR holds well, showing thrusting action from time to time, now we're at 50% resistance and major butterfly target. This combination suggests a bit deeper retracement:

Although chances of starting up right from current level are above zero, but we still prefer 1.075-1.0790 support cluster. First, because it is stronger and more reliable, second - this is minimum 4H butterfly target. But, this is just personal view, it is no problem to consider long entry right around 1.0815 area as well, or split position to combine both ways:

 

[FreddyFX]

Love to trade XAUUSD more and more, EURUSD sucks lately !!!

 

[Sive Morten]

Love to trade XAUUSD more and more, EURUSD sucks lately !!!

When I just have started to deal with gold - it was absolute nightmare to me, very different and difficult market to trade... but as time was passing by, it has become a bit easier. It is very interesting, and different.

 

[Sive Morten]

Morning folks,

So, at first glance, it seems that markets behave curious, despite all hawkish comments from the Fed and ECB. We suspect that central banks totally has lost the faith of the markets and confidence. Nobody believes in recent statements and suggest that policy easing will come earlier, at least in the US. This explains that US Dollar is loosing positions across the board.

EUR is not just reached all targets that we've specified, but exceeded them, braking last 5/8 level. And only Overbought nows holds it form further upside action, with 1.11 top as the next destination point. DRPO shows its shine.

Today, guys, we do not see many things to do. Bears should sit on the hands. It is better to not try to argue with the upside momentum that we have, except maybe scalp trades on 5-15 min charts. While bulls should wait for the pullback to consider new entry. Overbought area is not the best one for new purchases.
Since momentum is strong, we suggest that highly likely we could get some B&B type of action, although it will not be the one by letter. With some downside retracement to nearest two levels, EUR, due solid upside momentum could re-test current tops. This is the nearest setup that we could consider, but it seems hardly it happens earlier than on Monday.