With the excuse of Thursday's bad economic numbers, the market found a good excuse to send the Euro lower against the Dollar in a corrective manner, along with the stock markets which for the last few months have also been maintaining a strong correlation with Dollar moves. Technically speaking however, the short term uptrend is not just yet violated and the currency pair is still gradually and painfully building upside momentum. It is still quite probable that we may be seeing 1.4500+ over the coming days/weeks. The remainder of this Friday's session should prove uneventful and expect interest to pick up again on Monday morning.
Strategy: This correction therefore, has brought the pair into an excellent from a risk/reward point of view area and I am a buyer between 1.3990-1.4010, just above the latest support zone. I maintain my initial hard stop at 1.3910 offered and if all goes well, I have 1.4200 as the target area for taking a first profit on a 1/3 size of my open position.