Trade Of The Day: EURUSD TO TEST 1.1240

Trade Of The Day: EURUSD TO TEST 1.1240

Trade Of The Day: EUR continues to trade in a sluggish choppy fashion, as implied volatility suggests. Nonetheless, from a positioning perspective the pain point in the market in terms of direction is higher, especially with some ECB members recently putting a damper on a move as soon as March and with risk sentiment trading heavy. The key risk events of note are the NFP on Friday and Yellen’s speech next week. Daily wedge pattern in the charts suggest a breakout soon, with pivots of note at 1.0955 and 1.0980. Supports on the downside at 1.0890/80 initially. The topside break of the pattern targets an equidistant swing objective at 1.1240.

Trade Idea: I am monitoring the price action in the Euro, looking for upside pressure to build and eventually push through resistance. If this scenario develops (as per the chart below) I will be anticipating a throw back move to test the the former trend line resistance as support 1.10/1.0950, where I would look to set longs targeting the equidistant swing objective at 1.1240

2016-02-03 08_31_39-EURUSD_ 1.09143 ▼−0.03% - EU - TradingView

For updates on trade of the day set ups and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick

Posted in Daily Setups, Forex Analysis, tagged with on