The EUR/USD has stabilized after rebounding off 1.40, near the midpoint of the latest 1.38-1.42 range and a key fibonacci retracement (61.8% of 1.3839-1.4300). The possible bearish rejection off former trendline support hints of a weakness towards 1.3957 initially (78.6% of 1.3839-1.4300). If the 50-day MA (1.4033) remains supportive, then the medium-term bullish structure remains intact.
The US Dollar Index looks like it may have rebounded off an internal trendline as well, but remains constricted by the 20-day MA and a key fibonacci retracement (38.2% of 78.31-81.50). Another intraday higher low would suggest a retest of the 80 handle, where the 50-day MA and 50% retracement coincide. A sustained loss of 79.18 (key pivot) dampens the recovery outlook.
DXY's stop-loss has been raised and a new EUR/USD short position has been added.
