Trading the euro-dollar, at times, could be hazardous to your health as volatility moves into the pair aiming to judge the rhetoric out of the ECB.
The fact of the matter is that the ECB is stalling, as it always has, when it comes to quantitative easing. The EURUSD got bids after the sentiment for QE moved from potentially December to now what looks like January - it could even move further out.
Technically, the pair has support near 1.2350 that corresponds with price support on the daily chart. However, the 4H chart, the pair has a descending trend line it will have to break. Nonetheless, the 200-4H EMA poses a great near-side target for longs at 1.2585.
If the euro-dollar can break these levels of resistance (looking for further pullbacks in the dollar index), targets of 1.2625 and 1.2670 are in play. Considering that ECB President Mario Draghi does not jawbone the euro lower, the pair has promise to the upside. The 20-4H EMA is looking to cross both the 50 and 72 EMA, which is quite bullish near-term.
But, traders know as well as anyone, central bankers love to talk. If the euro catches some weakness, look for the pair to test support at 1.2480 and secondarily 1.2435.
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The fact of the matter is that the ECB is stalling, as it always has, when it comes to quantitative easing. The EURUSD got bids after the sentiment for QE moved from potentially December to now what looks like January - it could even move further out.
Technically, the pair has support near 1.2350 that corresponds with price support on the daily chart. However, the 4H chart, the pair has a descending trend line it will have to break. Nonetheless, the 200-4H EMA poses a great near-side target for longs at 1.2585.
If the euro-dollar can break these levels of resistance (looking for further pullbacks in the dollar index), targets of 1.2625 and 1.2670 are in play. Considering that ECB President Mario Draghi does not jawbone the euro lower, the pair has promise to the upside. The 20-4H EMA is looking to cross both the 50 and 72 EMA, which is quite bullish near-term.
But, traders know as well as anyone, central bankers love to talk. If the euro catches some weakness, look for the pair to test support at 1.2480 and secondarily 1.2435.
My good friends Daniel and Kristie have a new start-up, please check out: tinyurl.com/n4y989g