EUR going bear-shaped
This week I have EUR/USD as my trade for the week. Last week we saw an appreciation in the Euro due to a weakening dollar as the Euro advanced on the back of comments from ECB President during the Central Bank’s Forum. On Tuesday, President Draghi had stated that the Eurozone economy is showing signs of improving, giving a positive sentiment towards the current situation in the Euro zone. There was a sell off on Wednesday due to the miss interpretation of the previous day’s statement from the ECB.
By midweek, the pair had reached a high of 1.1440, only to retreat on Thursday and Friday. I see a potential short trade from current market levels to our first take profit level at 1.1346 and should the price action break this support level, my next target should reach 1.1285. My first stop loss would be at the 1.1450 level and I would move it to 1.1360 after the price reaches the first take profit level. However, it is also important to note that this is the first week of the month and a lot of volatility should be expected especially with the NFP on Friday.
I suspect that the pair will range between 1.1272 and 1.1440 for the weeks to come but should it trade above 1.1440, I anticipate that the pair will reach the 1.1500 mark which will be my first take profit level on a long trade from 1.1450 and possibly reaching 1.1600. The stop loss for the long trade would be 1.1420.
Remember, trade responsibily and only trade capital you can afford to risk.
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Wishing you a profitable trading day!
