I’m looking to buy dips in the EUR/USD this morning towards 1.3865/90. I will look to exit the trade below 1.3800 and my target is 1.4200.

My reasoning is:

  1. EUR/JPY has turned bullish
  2. EUR/GBP market is short
  3. SNB and BIS supporting EUR/CHF
  4. Good news for the US economy overnight was ignored
  5. 3-wave s/t retracement off the 1.4050 recent high is now over

Good sized selling at 1.3980/00 should cap rallies in Asia and based on recent sessions, we can expect to see an approximate 100 pip range during Asian trade. I’m hoping for a dip during the day which will allow me to get long with a 3:1 P/l ratio.