EURUSD, Daily
Earlier today Eurozone M3 money supply came in unchanged at 5.0%, as expected in February data. Amid the components, private sector credit showed a 3.2% y/y increase, up from 2.6% y/y growth in the previous month. This moving in the right direction, though below where ECB policymakers would like. Money supply has long since been demoted in the metrics the ECB uses in formulating policy decisions.
Over the last week EURUSD traded lower from the weekly Bollinger Bands after it had rallied for three weeks in a row. Stochastics oscillator is near overbought levels in the weekly picture. The EURUSD pair has created higher lows and higher highs in the daily timeframe and looked like it was building upside momentum. However, the latest high is lower than February 2nd high and suggests the pair could correct lower towards the weekly 30 and 50 period SMAs. This would bring the pair near a rising channel low and the lower daily Bollinger Bands.
I am therefore looking for buy signals between 1.0915 and 1.0990 with Target 1 at 1.1134 – 1.1220 area and Target 2 1.1288 – 1.1360. Please, remember to apply the entry and risk management principles I’m teaching in the webinars. Join me to free webinars if you want to learn more.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
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