EURUSD Chart Technical Outlook Higher levels predicted on USD weakness
Later we have the non-farm payroll release, the US employment data. With this in mind, price action today is likely to be dominated by the US Dollar (DXY)
DXY (USD Index) technicals – Broken out of the ending wedge formation to the downside. The pattern has a measured move target of 103.83. The 78.6% pullback level is located at 103.84. We have a 261.8% extension level located at 103.86. The retest of the wedge formation can be seen as wave 2 in a bearish earlier wave count (5 waves). We are currently trading close to the 161.8% extension level of 104.56. There is ample scope for consolidation in the 4th wave going into the employment data.
