After dropping to 1.16 a couple of weeks ago, EUR/USD has managed
to stage a pretty strong recovery.
The US dollar has weakened drastically last week thanks to talks of another
big stimulus package from the US.
However, Euro's recovery may be short-lived. With rising Coronavirus cases in the
Europe, market participants will soon start pricing in a weaker and slower than
expected economic recovery in the Eurozone. The brexit deadlock will
also put some added pressure.
So. the Euro will come under a lot of pressure as the year end approaches.
Technically, EUR/USD is currently in a minor ascending channel. Price could reverse
from the Upper Trend line of the channel. If the Lower TL breaks, then EUR/USD could
be in for a big decline to 1.15 level.
My approach is to look for bearish price action and sell EUR/USD.
to stage a pretty strong recovery.
The US dollar has weakened drastically last week thanks to talks of another
big stimulus package from the US.
However, Euro's recovery may be short-lived. With rising Coronavirus cases in the
Europe, market participants will soon start pricing in a weaker and slower than
expected economic recovery in the Eurozone. The brexit deadlock will
also put some added pressure.
So. the Euro will come under a lot of pressure as the year end approaches.
Technically, EUR/USD is currently in a minor ascending channel. Price could reverse
from the Upper Trend line of the channel. If the Lower TL breaks, then EUR/USD could
be in for a big decline to 1.15 level.
My approach is to look for bearish price action and sell EUR/USD.
Trade closed manually:
Sell closed at 1.17 with 130 pips profit