Buy EURUSD on a pullback
EUR firmed amid risk off sentiment overnight as the pair maintains its funding status trading with an inverse correlation to risk sentiment. Most European equities fell more than 2% yesterday. A strengthening euro, together with falling oil prices, has continuously put downward pressure on inflation, fueling speculation of an expansion of the ECB’s QE programme.
Euro continues to frustrate bears who have chased the recent move lower. Breach of 1.1150 intraday resistance, resets focus on upper end of recent range, bulls now target stops above the 1.13 handle.
Buy pull backs against 1.12 targeting 1.1380. This trade has the potential to test the upper regions of the 1.11 – 1.15 range. This trade is supported by bullish Order Flow signals on the daily timeframe.
Trading Update – Stops to 1.12 entry level