EUR/USD Spot Price: 1.1881
Support: 1.1850, 1.1800, 1.1700
Resistance: 1.9000, 1.9800, 1.2107
Trade Ideas - Looking for a short term pullback in EUR/USD
The EUR/USD is in an uptrend longer term and we are doing our best to position ourselves for an entry, without buying the top of a move. The stronger USD on Friday might just give us the opportunity we need.
Enter on a pullback at 1.1800 as that’s the key level that has been in play for us previously. Our initial profit target will be 1.2000.
We’ll set our stop loss at 1.1700 and if it breaks this area I would assume the short term momentum has run its course.
EUR/USD 240 min Chart - EUR/USD is looking to hit 1.2000
Last week all the focus was firmly on the US nonfarm payroll numbers. As it turned out the US increased the number of jobs by 156K last month, however that was below expectations. Interestingly that lead the USD to rally which was different to what the number would have suggested.
At the same time a report on Bloomberg came across the wires saying that there was a suggestion that the ECB was going to hold off with any tapering of asset purchases until later in the year. That only put more pressure on the EUR/USD and it sold down sharply.
And just when we thought that was enough action for one week, North Korea have continued to show off their military firepower by testing a hydrogen bomb. That sent the safe-havens higher in early trade on Monday, however this type of thing has happened a few times now and there is always a retrace. This does seem like it might be a step up from the recent missile tests so keep an eye on any developments as the week rolls on.
While there are headlines flying all over the place on Monday surrounding North Korea as things settle down, attention will shift back to the Central Bankers. There are a range of rate decisions this week. However for our purposes we will be focused on Mario Draghi and the ECB meeting and press conference on Thursday (September 7th). We want to know if there will be any change to interest rates and whether or not QE will be getting wound back.
The EUR/USD is still on a bullish uptrend. At the moment the key level is clearly 1.1207. Key support still remains at 1.1700 which has held up strongly for a number of weeks prior to the Euro pushing higher.
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