EURUSD - will economic fears fuel an interest rate cut?
The trend currently shows if we break above 1.1285 level we will have signals for continuation to the upside. With looming calls for an interest rate cut in the US I believe bias might lean more towards the short side. With a retest of support around 1.1200 before continuing.
Comment:
What did I tell you. We are going to get a continuation to the downside. Maybe see some resistance at the ascending support with a bounce before continuation to the downside.
Trade active:
Periodically adjusting stop to high of the previous 1 hr candle. Currently we are over extended on 1HR. I expect a pull back or retracement to 1.1270 area for a retest of resistance for continuation down.
Trade closed: target reached:
Buy stop at 1.12123 with a 50 pip profit.
This bear channel is strong and will only strengthen with a looming US interest rate cut.
This bear channel is strong and will only strengthen with a looming US interest rate cut.
Comment:
Genuinely surprised my full profit target was reached today before a full pullback at 1.1203. Glad I still jumped out especially since prices were in the oversold range. This just adds more fuel to the fire during the retracement.
