The EURUSD is the easiest of the major pairs to trade currently. As mentioned last week, price traded below a technically important level which opened the door for further downside selling. Geopolitical events can cause sudden unexpected back and forth moves in the financial markets and with that said, the EURUSD looks like it may continue lower.
Today after the U.K. open, price tested its Asian low, bounced upward and then broke clearly lower with trend. A short was taken risking 15 pips for a potential 49 pips to our daily target. Price moved downward through yesterday’s low, then continued lower. We tightened our profit stop in advance of the U.S. open and were quickly closed by the market…missing out on the final wave to the downside for today.
There will be some European bank holidays on Thursday, as well as the Bank of England monetary policy announcements.
On the geopolitical side, keep an eye on USD strength, gold and the bond market for guidance.
Good luck with your trading!
