Its once again time to Short the EURUSD. we have so far taken a good rally over 100 pips on the Long . So i think we can short EURUSD at this point. EU economies are struggling and that has not changed. Italian budget does not fix that.
EURUSD Short: SELL
Entry : 1.1390 /1.1425
Exit : Anywhere below 1.1350
EURUSD Short: SELL
Entry : 1.1390 /1.1425
Exit : Anywhere below 1.1350
Comment:
NOTE:
Consolidation range since November 2018 :
Top of Range = 1.1425/60
Bottom of Range = 1.1215/69
Consolidation range since November 2018 :
Top of Range = 1.1425/60
Bottom of Range = 1.1215/69
Comment:
Items to Watch for:
1. ITALY Budget --seems to be resolved -- Positive for EURUSD but that has been baked already
2. BREXIT deal talks --- Until January 14 for the next phase
3. EU Economic Data --- Has been weak lately ( This is the long fundamental factor driving the EURO)
So what's the probable trend ? IMHO , i think for EURUSD we head back to test mid 1.1200s. Even if we head higher on EURUSD we have to break the 1.14600 and 1.1503 resistance before we can start singing to the masses about going LONG
1. ITALY Budget --seems to be resolved -- Positive for EURUSD but that has been baked already
2. BREXIT deal talks --- Until January 14 for the next phase
3. EU Economic Data --- Has been weak lately ( This is the long fundamental factor driving the EURO)
So what's the probable trend ? IMHO , i think for EURUSD we head back to test mid 1.1200s. Even if we head higher on EURUSD we have to break the 1.14600 and 1.1503 resistance before we can start singing to the masses about going LONG
Comment:
Watch GBPUSD because it will drive the EURUSD for the next few days
Comment:
NOTE:
Ask yourself, Why is EURUSD still trying to rally ( Up 42 pips since open- 5pm EST ) when GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD are not moving . An indication of EURUSD Bull Speculators and retail traders playing around . Most of the Major players ( Large Banks) are looking at the FOMC today in order to position themselves
Ask yourself, Why is EURUSD still trying to rally ( Up 42 pips since open- 5pm EST ) when GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD are not moving . An indication of EURUSD Bull Speculators and retail traders playing around . Most of the Major players ( Large Banks) are looking at the FOMC today in order to position themselves
Comment:
Tons of Speculators and Algos in the Market at the moment . Most of the Algos seem to be from Major Banks
Comment:
They drove EURUSD up to 1.1406 then dropped it to 1.1388 in 10 minutes and drove it up again to 1.1399 . Well that sums up today's market -- No proper direction -- just consolidation .
EURUSD Bulls have been doing everything to hold on to 1.1400 handle but its starting to look that its going to be tough to do that , so lets wait and see
EURUSD Bulls have been doing everything to hold on to 1.1400 handle but its starting to look that its going to be tough to do that , so lets wait and see
Comment:
EURUSD is starting to look like a EURUSD " Bull Trap", so watch with FOMC on the deck . If you look at the overall dollar DXY weakness since 5:00 PM EST ( New York Time )
EURSUD -- Up 51 Pips
GBPUSD -- Up 12 Pips
AUDUSD -- Up 15 Pips
USDJPY -- Down 19 Pips
USDCAD -- Down 1 pip
USDCHF -- Down 1 pip
It seems we have a lot of speculators on EURUSD relative to other USD denominated currencies . That indicates a start of a Bull Trap so be careful
We need it to break the upper range of 1.1425/60 and have a daily close above so that it confirms a break out of the range
EURSUD -- Up 51 Pips
GBPUSD -- Up 12 Pips
AUDUSD -- Up 15 Pips
USDJPY -- Down 19 Pips
USDCAD -- Down 1 pip
USDCHF -- Down 1 pip
It seems we have a lot of speculators on EURUSD relative to other USD denominated currencies . That indicates a start of a Bull Trap so be careful
We need it to break the upper range of 1.1425/60 and have a daily close above so that it confirms a break out of the range
Comment:
Close the Short position if EURUSD goes above 1.1440
Comment:
Have a tight StopLoss for the EURUSD Shot. The EURUSD Bulls and the USD weakness is putting bids under the EURUSD for now .
We are either going to blow through towards 1.1470 and then 1.1503 or EURUSD is going to collapse back to test 1.1300s . The Bids are not strong and the EURUSD bullish Trend is struggling but grinding higher
EURUSD is up 57 pips and grinding higher at this moment but all other currencies are muted . Its a little strange that EURUSD would be grinding higher when the EURUSD Economic data shows extended weakeness across the EUROZONE .
Let's see if it blows through 1.1440 and keeps climbing
Note: Please have your stop at 1.1440 if you have a EURUSD Short position
We are either going to blow through towards 1.1470 and then 1.1503 or EURUSD is going to collapse back to test 1.1300s . The Bids are not strong and the EURUSD bullish Trend is struggling but grinding higher
EURUSD is up 57 pips and grinding higher at this moment but all other currencies are muted . Its a little strange that EURUSD would be grinding higher when the EURUSD Economic data shows extended weakeness across the EUROZONE .
Let's see if it blows through 1.1440 and keeps climbing
Note: Please have your stop at 1.1440 if you have a EURUSD Short position
Comment:
Close the EURUSD Short position now
Comment:
EURUSD Collapsed as expected
Watch out : EURUSD is at 1.1405 --- the top of the consolidation range 1.1425 to 1.1280
If EURUSD powers beyond 1.1440 then we cancel or close our short and take a small loss