Fall in Factory orders (May), Average Earning Hours (May), increase in the Unemployment rate (May) and a fall in the Trade Balance (June) are the major factors due to which the USD plunged heavily over the last two months. The pair is in a downward trend since the last 4 months and is now trading near the 7 month support line of 1.0595. On the daily outlook, there is a clear double bottom formation and the stochastic oscillator is moving just above the oversold line. The pair is respecting the downward sloping blue trend line and is trading in the wide range of 1.0595 - 1.0874. From here, the next resistance level is 1.0874, the next target for longers and a strong support level is near 1.0595. In the very short term of say 2 to 3 days, there is a good probability that the pair will fall further, as Three Black Crow candles would suggest- traders can take this as a opportunity to make fresh longs. The next Fibonacci 23.6% resistance level (1.0874) should be sought after as the next upside target. At the moment traders can make long positions targeting 1.0874 and 1.0980 with a tight stop loss at 1.0595.Report Chart