Weekly trade idea on EUR/USD

Gil Ben Hur The5ers Fund

Week: 19-23.10.2020

Key event: EUR. manufacturing and services PMI

The Purchasing Managers' Index (PMI) indicates the expansion in both services and manufacturing industry. It is a key indicator of the conditions in the European economy. When it is above 50, it represents expansion in the economy, and when below, it means there is a contraction in economic activity.

Previous data was slightly above 50 points. This week it is expected to have similar results than before.

Because of the expectation, we should not see a lot of trend movement in the euro during the week, but a continuation inside the actual range. If the final value turns out to be bigger than expected, we could see a strong up movement in the euro. Contrarian escenario will cause a down movement.

Key Levels:

Resistance: 1.1823, 1.1900
Support: 1.1610, 1.14270

Price is contained between 1.1823 and 1.1610 levels. During the week, prices should fluctuate between those levels, giving us the opportunity to trade in both directions. Without the factor of surprise regarding the values, there should not be a breakout from actual range/consolidation.

Call to Action/Trade Idea

We might expect prices to either become closer to the relevant levels during the week, but not enough to affect its consolidation regarding the consolidation levels. We will look for sell signals close to resistance levels and buying signals close to suport levels.

In case of a surprise regarding results, we could see a consolidation breakout and a start of a new trend to next support and resistance levels.

Author

Gil Ben Hur

The5ers Fund

Gil Ben-Hur is the founder and CEO of The5ers Funding Traders & Growth Program. Starting his trading career in 2007, as an independent portfolio manager, in 2011 he established a free education forums website dedicated to pricing action trading.

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