Guys, I hope you had an amazing weekend. Since it's a start of a new week, I am really excited to avail new opportunities!

Well, in the preceding week, the Dollar soared to trade higher despite a bitter U.S. consumer sentiment data as the investors continued to weigh on the U.S. President Donald Trump's recent comment on Thursday that he would declare the phenomenal tax reform plan in the next few weeks. In a preliminary report, the University of Michigan declared its consumer sentiment index declined to 95.7, in February, from 98.5 the preceding month, as opposed to anticipations for a slip to 97.9.

The yellow metal Gold plunged more than 220 pips to place a low at $1221, whereas the Dollar Index (DXY) still supported and traded at 100.95, adding +0.23 points and +0.23% today.  

Recalling the "February 10th Morning Brief", the market moved exactly as per recommendation, particularly for the EUR/USD and USD/CAD. Let's have insights on the market to help you plan the 1st day of a new week.

Today on 13th Feb, in the absence of major economic events, the market is likely to trade on technical's and on the supported Greenback sentiment. However, investors may focus on:

– EUR: German WPI m/m

EUR/USD

The EUR/USD is trading bearish at $1.0619, down -0.0021 points and -0.20% in the early Asian trading session, after falling dramatically to a fresh two-week low of $1.0627. Moreover, the EURO as a single currency weakened on worse than expected economic events, particularly the French manufacturing output that fell back –0.8% on Friday.

Let's have a look at the chart.  We can see a descending triangle pattern, giving a pair strong support at $1.0611, along with a resistance at $1.0630, which is the descending trend line area. Besides that, the RSI is still holding below 50, demonstrating a bearishness in EUR/USD.

Fellows, we need to keep a close eye on $1.0611, the major support level, as the breakage may lead it towards $1.0580 and even deeper. So, buying is recommended above this level with a stop loss below $1.0600. Alternatively, the selling is recommended below $1.06110, aiming the target of $1.0575.

USD/JPY

The USD/JPY continues to trade higher for a 3rd consecutive trading day at 113.92, adding +0.73 points and +0.64% on stronger Dollar. The U.S. President, Donald Trump, and Japanese Prime Minister, Shinzo Abe, unleashed a joint statement addressing their trade relationships. Nevertheless, the impact remained mute on both currencies.

Now, let's have a look at the technical side of the pair. USD/JPY is trading exactly above a major double top resistance and became a support level of $113.84. Let me draw your attention to the EMA 50 on the 4-hour time frame; the pair tested the moving average before soaring to multi-day high.  The Oscillator, RSI, is also supporting the buying trend in the pair as it's holding above value 50.

Well, I must have recommended a buying trade in the USD/JPY, but I am focusing on the Gap as the market opened at $113.539 after closing at $113.191 on Friday. The mystery behind the Gap is it's meant to get filled on the same day or in the next few days.

However, I would recommend for you guys to wait until the market fills the gap or have a selling position below $114.115, aiming the target level of $113.315 while ensuring money management.

Happy Trading!