Trade set up - We are waiting on a daily close above $1.1345 before entering long. If price breaks through this level, we see significant potential for a strong upward move towards our target price of $1.1491, our stop to be set at $1.1256.
Why we like this trade - Based on our technical analysis the pair is presenting a variety of reasons to have this trade on high watch.
Price has continued to test $1.1345 as a key resistance level and is trading around the 50% Fib retracement. Moreover, this area highlights a stronger downtrend, and as highlighted earlier, breaks above these critical levels could imply a move towards the upside.
It's worth noting that implied volatility using EURUSD as a proxy - is sitting at approximately 61 pips, which suggests that options markets are not pricing in too much from the ECB meeting this week. However, given the amount of data coming out from Europe this week, we could see some sharp moves if economic data surprises traders.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Why we like this trade - Based on our technical analysis the pair is presenting a variety of reasons to have this trade on high watch.
Price has continued to test $1.1345 as a key resistance level and is trading around the 50% Fib retracement. Moreover, this area highlights a stronger downtrend, and as highlighted earlier, breaks above these critical levels could imply a move towards the upside.
It's worth noting that implied volatility using EURUSD as a proxy - is sitting at approximately 61 pips, which suggests that options markets are not pricing in too much from the ECB meeting this week. However, given the amount of data coming out from Europe this week, we could see some sharp moves if economic data surprises traders.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Trade active:
Daily close above $1.1345 confirmed - we expect a slight pullback here but buyers are in control.
Disclaimer:
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment.