On the chart, I used the Fibonnaci retracement tool and we can see the 50% Fib retracement level lines up with minor resistance around 1.4660. This pair has been in ranging mode for a while now, and I feel if it rallies back higher we may see a test of that area before a bounce back lower. Our max profit target is a support area previously tested in the beginning of December.
Before going into the trade idea, let’s remember we have US CPI tomorrow. This may give us enough volatility to push the pair up to our sell area. Stronger inflation for consumers is expected, especially after the upside surprise to PPI today. We may see the Greenback further rally later today.
For now, we will jump in short at a better price:
Stay tuned for updates and trade adjustments. Good luck and good trading!