Risk appetite has returned this week, with both the U.S. and China progressing forward to signing the phase one agreement this month. This has caused the USD to move higher with each whisper of good news regarding the positive developments. Similar to Brexit, it’s not done yet but it’s moving in the right direction.
Today as the the EURUSD failed to close above its Asian session high, a short was taken risking 11 pips for a potential 41 pips to our daily target at 1.1088. Price moved down to its Asian session low and retested this level as the U.S. session was about to get underway. Price then continued downward and we exited at our target level of 1.1088.
It’s looking like it could be a good week for trading. The USD is at a technically significant level, so we will see if it pulls back or not tomorrow. Gold pulled back significantly today as we would expect with the strong USD momentum. The EURUSD will likely find some buyers at the technically important 1.1000 level… if it continues lower from here.
Good luck with your trading!
