Economic data out of the Eurozone and the United States weighed the dollar down today. US existing home sales increased for the second month in May. European purchasing manger indexes shrank by the least amount since the inception of the recession. As a result, risk appetite increased which always hurts the dollar. I was stopped out on my last trade for a -42 pip loss. I will be looking to go long, as long as price finds support at the 1.400 level which corresponds with the 38.2 Fibonacci retracement level at 1.4001. The bullish triangle reversal pattern played out today with a break of the upper trend line of that formation (See 1 hour H1 chart). My target if this plays out will be 30 pips below the 138.2 Fibonacci extension level at 1.4186. I will be looking to short the Euro at this level. Stay tuned on twitter for real time trade updates.
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