Update - Trade possibilities on EUR/USD (17/05/2018)
We have closed our trade on the EUR/USD for a 112-pip profit. Due to some indecision currently in the market the price might retrace higher from here as seen last week.
Trade possibilities on EUR/USD
Looking at the U.S. Non-Farm Payrolls numbers due to be released today and if we get a better than expected number we might see the Dollar Index (DXY) strengthen. This will mean that there might be a possibility of the EUR/USD weakening from current levels.
Note: if the jobs numbers do not beat expectations then we might see the Dollar Index (DXY) start to weaken from current levels.
Looking at the Dollar Index (DXY)
Points on the chart:
- We need a clear break from 92.83 to target 94.12.
- The Dollar Index (DXY) will weaken and regain strength moving higher, probably off the back off rising interest rates.
- The Dollar Index (DXY) moves back to the April breakout level 90.97.
Looking at the EUR/USD
If the Dollar Index (DXY) starts to strengthen then we might expect the EUR/USD to break the support level of 1.1935 and start to move lower.
- Entry: a break below 1.1935
- Stop: 1.2091
- Target price: 1.1716
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