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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.