Reasons For Trade:
For long entry we have completing just above 1.1320
For short entry we have a completing around 1.1430 level
For long entry stop needs to be 1 ATR i.e. 13 pips below A. See concerns below.
For Short we can have stops just above A around 1.1470
First Targets at: 38.2 Fibonacci
Second Targets at : 61.8
Take first target and close 60%
10sma is in the middle of 50sma and 200sma causing market to get stuck at the moment. So if market goes on to complete it will be in uptrend. That means we will have to be careful about our extended targets.
If the market goes to complete we may not be in down trend. We will still be consolidating as long as it respects point A. However we will have 50sma and 200sma above us that means we will again have to be careful with our extended targets.
Also for stop placement is not clear as the next level is below 1.1279 which gives us a huge risk area.
Planned News/Events Expected:
TueOct 20 8:30am USD Building Permits
ThuOct 22 7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference
USD Unemployment Claims
FriOct 23 3:00am EUR French Flash Manufacturing PMI
3:30am EUR German Flash Manufacturing PMI