Next week traders should pay attention into three events which can affect greatly on E/U pair:
- Thursday: Fed's Bernanke Speech + GDP of Germany and EU.
- Friday: CPI of EU.
This is three main events, E/U rallies or sell-offs depend on those three events.
And what about the rest days ?. Monday to Wednesday.
I think E/U would sideway in a range which I show on the chart.
1.33 is the support , a very strong support bases on Gann Sqaure Nine. Price hardly bounces when hit that support if market doesn't provide a strong catalyst.
I think GDP information and Fed's Bernanke speech would provide that catalyst which hit E/U to breaks that strong support.
Thus, From Monday to Wednesday, E/U in my opinion will not break that support.
That is the first line of range which I mention above.
The second line of range is 1.3467. That is the strong support now turn strong resistance. E/U price hit that support many times before break it when Mario Draghi announced to cut the Interest.
So I think E/U will not rally above that resistence. In addition, I don't believe that E/U will increase because Interest cut. It's hard to rally. Very very hard.
In short, I will open one trade:
Enter: 1.33645
Stop Loss: 1.3424 (38% Fibonacci Level)
Take Profit: 1.33
I will wait until Thursday.
But there are many many evidences show that E/U absolutely falls down :
+ EU cuts Interest rate.
+ US economy recovers very good.
+ FED taper.
+ EU Economy still be weak.
+Tenkan Sen cuts Kijun Sen
Price is being below EMA 50, SMA 50, SMA 20, SMA 10, broke SMA 100.
- Thursday: Fed's Bernanke Speech + GDP of Germany and EU.
- Friday: CPI of EU.
This is three main events, E/U rallies or sell-offs depend on those three events.
And what about the rest days ?. Monday to Wednesday.
I think E/U would sideway in a range which I show on the chart.
1.33 is the support , a very strong support bases on Gann Sqaure Nine. Price hardly bounces when hit that support if market doesn't provide a strong catalyst.
I think GDP information and Fed's Bernanke speech would provide that catalyst which hit E/U to breaks that strong support.
Thus, From Monday to Wednesday, E/U in my opinion will not break that support.
That is the first line of range which I mention above.
The second line of range is 1.3467. That is the strong support now turn strong resistance. E/U price hit that support many times before break it when Mario Draghi announced to cut the Interest.
So I think E/U will not rally above that resistence. In addition, I don't believe that E/U will increase because Interest cut. It's hard to rally. Very very hard.
In short, I will open one trade:
Enter: 1.33645
Stop Loss: 1.3424 (38% Fibonacci Level)
Take Profit: 1.33
I will wait until Thursday.
But there are many many evidences show that E/U absolutely falls down :
+ EU cuts Interest rate.
+ US economy recovers very good.
+ FED taper.
+ EU Economy still be weak.
+Tenkan Sen cuts Kijun Sen
Price is being below EMA 50, SMA 50, SMA 20, SMA 10, broke SMA 100.