IDEA 13: EUR/USD approaching short term resistance
In my previous idea
www.tradingview.com/chart/NPtyCr7N/
I explored the possibility of EUR/USD retesting 1.0792. It did so in record time and triggered my buy entry at 1.0792 which was stopped out at 1.0765. I went long again at 1.0733 and have already tightened my limit stop to 1.0755. The uptrend very narrowly survived after the pair barely closed above the 8h uptrend line.
These trades highlight a couple of things:
These markets are shooting first and asking questions later due to the uncertainty in the banking sector world wide.
One should be prepared at all times with a predetermined stop. The possibility of a black swan event has increased significantly with credit conditions tightening around the globe.
As retail traders we do not have the same access as institutional traders to info such as the credit default insurance cost that spiked for Deutsche bank and caused this sudden drop in EUR/USD. Or maybe I don't know where to look.
I have highlighted the areas of resistance coming up on the charts. Of particular interest will be the previous breakout area of 1.0804 which happened after the FED rate decision on 3/22/23. If there is a sustained breakout, there may be a return to 1.0831 and then 1.0885.
The highlight of the weekly economic calendar is on Friday 3/31/2023 with Euro zone CPI followed by USD PCE price index which is the FED's preferred gauge of inflation. It is also the end of the month and the first quarter, so an abundance of caution is warranted.
Good luck everyone.
www.tradingview.com/chart/NPtyCr7N/
I explored the possibility of EUR/USD retesting 1.0792. It did so in record time and triggered my buy entry at 1.0792 which was stopped out at 1.0765. I went long again at 1.0733 and have already tightened my limit stop to 1.0755. The uptrend very narrowly survived after the pair barely closed above the 8h uptrend line.
These trades highlight a couple of things:
These markets are shooting first and asking questions later due to the uncertainty in the banking sector world wide.
One should be prepared at all times with a predetermined stop. The possibility of a black swan event has increased significantly with credit conditions tightening around the globe.
As retail traders we do not have the same access as institutional traders to info such as the credit default insurance cost that spiked for Deutsche bank and caused this sudden drop in EUR/USD. Or maybe I don't know where to look.
I have highlighted the areas of resistance coming up on the charts. Of particular interest will be the previous breakout area of 1.0804 which happened after the FED rate decision on 3/22/23. If there is a sustained breakout, there may be a return to 1.0831 and then 1.0885.
The highlight of the weekly economic calendar is on Friday 3/31/2023 with Euro zone CPI followed by USD PCE price index which is the FED's preferred gauge of inflation. It is also the end of the month and the first quarter, so an abundance of caution is warranted.
Good luck everyone.
