Good day pippers!
I had a very long break last week. It has been quiet some time since I bring my family to a holiday trip. 
OK. Back to our analysis. In the recent weeks, to be precise, 2 weeks ago, Euro had seem to gain some momentum against the greenback. The highest price that was recorded was at 1.2467 and from that point the price has drop for more than 250 pips till yesterday.
Fundamentally
I was coaching my last class yesterday when we saw an unexpected drop in the New Home Sales (US) data. That news eventually kept me away from trading at least for an hour (10.00 pm – 11.00 pm). But another news was in hand. The FOMC statement was released at 2.00 am and still the rate haven’t change. In my recent years of trading, I always wanted to avoid trading FOMC statement. The news itself has significantly pushed the pair upwards for more than 120 pips. Not bad for a day trader!
Technically
Still, my view is on SHORT. I can’t see the Eurozone push any higher that what it has recorded last week. If you understand the nature of a trend, than this must be the retracement. The pair is taking its breath for the next downward target. A strong resistance line is seen at 1.2340 and a break above there will bring the pair to the 1.23600 and 1.24200. My trading strategy is to short for the failure of breaking the 1.2340 line towards 1.23000, 1.22700 and 1.22400. A more aggressive trade will see shorting opportunities below the 1.22000 and 1.21000.
Happy pipping!
Scridb filter
0 Comments.