EURUSD: A Look Ahead (Day 3) "Keep An Eye on GDP Today"

FX:EURUSD   Euro / U.S. Dollar
As I told my Syndicate members last night, although we’re at a minor level of structure, double bottomed at that level (LTF) and are currently putting in a 2618 on the Euro             , I have no intentions of buying. It’s not a Greece thing, or the fact that I’m scared to pull the trigger after yesterday’s losing trade. It’s simply because I have no real place that I would feel comfortable taking targets at. So instead of forcing a revenge trade (like I almost did with USDJPY             yesterday for you guys in the live room) I’ll reload my I.P.D.E. and start from scratch like I do every day.


The next area that I would consider getting long is down at the 1.1060s area. We’ve got price action holding support there 4 times in the past two months as well as some Fibonacci confluence between a 1.272 extension and a 61.8 retracement. Obviously I’m not placing an aggressive limit order there like I would with an advanced pattern but that’s where I’ll be looking for entry reasons.

At 8:30am New York time we have US Final GDP coming out. I think this is going to be big. We all know the story by now about interest rate hikes and overall condition of the economy. Well there’s no better release is there. Yesterday the USD had a bad number, yet shook it off and still gained. This causes me to think that the overall sentiment in the market is still bullish the USD which means the market should be primed to jump all over a good GDP and ignore a poor one (talking about after the initial dust has settled).


My only short option at the moment (aside from intraday trading) is to wait for a push back up to 1.1300 level. We’ve got a 61.8 Fibonacci retracement and some previous structure up there, but my reversal zone would be rather large which is why I’m not too interested for today. I’d like to see what price action does up there first. We may also be setting up a smaller gartley pattern (1hr) right below a minor structure level at 1.1260’s which is worth keeping an eye on for you Lower Timeframe traders.

We’ll see what the market has in store for us, but certainly keep an eye out for 8:30am NY.

Other trades on my radar are the AUDCAD             and the AUDUSD            

Akil Stokes
Chief Currency Analyst at http://www.TradeEmpowered.com
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