Last night, due to DXY was strong plus Italian government persists their budget plan to massively increase government spending, EUR depreciated heavily. It is expected that DXY would remain strong after some level of retreat during the day, and EURO zone is still extremely sensitive to any news related to Brexit and Italy budget issue. Therefore the overall strategy is still taking short position at daily high.
Two possibilities are shown with green and red arrows:
1. Green arrows: wait until the price goes back up to resistant level 1.15000 then take a short position to 1.14400. 2. Red arrows: In case of DXY depreciates somehow larger than we expect, take short position at around 1.15350 then take profit at 1.14400.
*Aggressive traders may take long position right now to 1.15000. Stop loss at 1.14560
Nice idea on EURUSD. For our set up, we have identified the key resistance and support levels. Currently, price is approaching our first support at 1.1432. It is horizontal swing low support, 61.8% Fibonacci extension and a 76.4% Fibonacci retracement. Stochastic is approaching resistance at 2.44% and we might see a corresponding bounce in price. If a corresponding bounce does occur, we may want to take a look at the 1.1502 resistance level. It is a horizontal pullback resistance, 61.8% Fibonacci extension and a 38.2% Fibonacci retracement.
Please take a look at our idea and share with us what you think.
Please take a look at our idea and share with us what you think.