Equity markets were steady, giving the USD some breathing room from the stunning losses it’s seen over the past week. However, it did not slow it down long enough to stop the trend on the EURUSD break through the December 2008 highs.
With the news event schedule light until next Wednesday’s US interest rate statement, expect that trend to continue consolidate and hold the currency markets to a tightening range over the next few days. However, we expect it to quickly resume and we will look to the EURUSD as our trigger to continuing selling the USD.
Daily Currency Pair Analysis
EURUSD: We are looking for today’s D1 candle to close above 1.4720 to signify a continue of this long-term uptrend. However, a pullback to 1.4615 would give us a much better price to buy and potentially reduce some of our risk of drawdown on a long term trade.
Potential Trade: Long EURUSD
Optimal Entry: 1.4615
Potential Stop Loss: 1.4450
Potential Take Profit: 1.4950
