The key bull/bear line in the sand for EUR/USD has been broken to the downside, once again marking a major shift in the trend outlook for the currency pair.
The level we’re referring to is a zone between 1.1025 and 1.1072, which is a former resistance from March.
We saw the market go over this level in April and consolidate above it in May, but now it looks as if enough shorts have been stopped out for this pair to continue back down for a test of the 1.05 zone.
Remember that with the final deadline for Greece’s agreement with creditors seemingly close by, we could see a buy-the-news and sell-the-fact dynamic play out, where during the whole negotiation process, we saw EUR/USD climb, while at the final stage we see it collapse once again, and possibly continue lower.
Trading Plan
Currently our outlook focuses on the short term, with targets in the 1.0850 – 1.0950 range already being hit on a break of the bull/bear line we mentioned earlier in the 1.10s.
Currently we see shorts toward 1.0920 with a target of 1.08 and a tight stop as a good setup. Actually, shorts at any of our marked levels above and up to the bull/bear line at 1.1025 – 1.1072 are good short
The level we’re referring to is a zone between 1.1025 and 1.1072, which is a former resistance from March.
We saw the market go over this level in April and consolidate above it in May, but now it looks as if enough shorts have been stopped out for this pair to continue back down for a test of the 1.05 zone.
Remember that with the final deadline for Greece’s agreement with creditors seemingly close by, we could see a buy-the-news and sell-the-fact dynamic play out, where during the whole negotiation process, we saw EUR/USD climb, while at the final stage we see it collapse once again, and possibly continue lower.
Trading Plan
Currently our outlook focuses on the short term, with targets in the 1.0850 – 1.0950 range already being hit on a break of the bull/bear line we mentioned earlier in the 1.10s.
Currently we see shorts toward 1.0920 with a target of 1.08 and a tight stop as a good setup. Actually, shorts at any of our marked levels above and up to the bull/bear line at 1.1025 – 1.1072 are good short
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.