EUR/USD

German investor confidence fell again. It's the 5th consecutive fall. The strong EURO looks a huge problem for the recovery and the low inflation fears is a menace. The index index fell from 43.0 in April to 33.1 in May. The negative economic data affects EUR/USD, it dropped to weekly key parallel support levels at 1.367.

If we look into the technical picture, the story completely varies. The pair is heading towards the weekly key support area where the buying activity will take place. As we discussed in our yesterday's article, to go short below 1.3737 for 1.367 as targets, the pair made a low at 1.3689. In today's session we are recommending to enter longs in this pair. It will shift its journey towards the upside from the cmp or even dip at 1.367. As we have shown in the below weekly chart, risky traders can use sl at 1.364 and safe traders use sl at 1.367 on a closing basis.

The pair opened its trading on a bullish note. Currently, it is trading at 1.3704 levels. The daily momentum indicators signal the buy on dip strategy with sl 1.367 on a closing basis for targets at 1.3775 and 1.3823 levels on a positional basis.

Intraday-

The pair is trading at 1.3704, we recommend to buy this pair at cmp or even dip up to 1.367. It's a good opportunity to enter longs at this current juncture. We expect the pair will fly up to 1.3723, 1.3750, 1.3763, 1.3770, and 1.3818 levels. On the down side, the pair has strong support at 1.367 levels. Bulls need to hold this level, if not more panic days will come. Traders need to tighten their seat belts for drastic fall. On the other hand, the downside is limited by the technical aspects.

Recommendations- cmp 1.3704.