Currency Pair: EUR/USD
Sentiment: Short term bearish
Market focus:
In today’s trade set up we will be focussing on short term selling opportunities on the EUR/USD.
Fundamentals:
The euro plunged yesterday after Reuters reported the ECB is thinking of purchasing corporate bonds as soon as next year. However a spokesman for the central bank quickly played this down.
With the economy still looking grim as the eurozone battles to stave off the threat of deflation one wonders when the ECB will bring in QE.
Technicals:
We have a nice confluence zone at 1.2790-1.2800. This should offer short term resistance for any pullback.
Stop loss could be placed at 1.2860
First take profit target: 1.2735
Second take profit target: 1.2690
Trade management: After target 1 hit stop loss could be moved to breakeven
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