EUR/USD Spot Price: 1.1931
Support: 1.1900, 1.1860, 1.1700
Resistance: 1.9600, 1.2000, 1.2100
Trade Ideas - Looking for the EUR/USD to continue its Bullish Trend
The EUR/USD is in a strong uptrend so we’re going to look for that momentum to continue. However we would like to see a pullback before we try and enter as there is a chance of a retrace back into the holding pattern of last week.
Enter on a pullback at 1.1850 as that’s the key level that has been in play for us previously. Our initial profit target will be 1.2000. However don’t enter if we spike through this level then retrace to 1.1850.
We’ll set our stop loss at 1.1800 and if it breaks this area we would assume the short term momentum has run its course.
EUR/USD 240 min Chart - EUR/USD is looking to hit 1.2000
Traders had been waiting all week with anticipation as central bankers from around the globe converged on Jackson Hole, Wyoming for the annual economic symposium. There was keen interest in any remarks from both Federal Reserve Chairman Janet Yellen and ECB President Mario Draghi as to whether there would be any changes to the current course of monetary policy.
As it turns out, both of the key policy makers failed to give away any new information and held their cards close to their chest. The Euro gained against the USD, while the dollar fell away across the board. At the close of trade on Friday the EUR/USD had managed to poke its head above 1.1900 which had been acting as key resistance for a number of weeks.
However as Asian trade got under way on Monday, the gap higher closed and it looks like we might fall back into the holding pattern below 1.1900.
With Jackson Hole behind us, attention turns to the state of the US economy with non-farm payrolls due for release on Friday. Traders will be keen to see if the USD can recover some of the ground it lost last Friday.
Eurozone CPI will also be out later in the week, which might spark the Euro to push another leg higher.
The EUR/USD is still very much on a bullish uptrend. At the moment the key level is clearly 1.1900 and 1.2000. After all the excitement of Friday we are expecting a slight pullback into the range below 1.1900, however longer term we will be looking for a spike through 1.2000.
EUR/USD - 240 min Chart - Key short term support and resistance
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