EurUsd Higher on ECB Rates Cut Rumors đź—ż
Updated
Hello traders! EurUsd has wasted no time and is seeing some buying pressure to kick off the week. We are 31 pips from the previous weeks high price as the Eur is being bought ahead of next week's Interest rate announcement by the ECB. Apparently the central bank will be cutting rates and so the market is moving on a "Buy the Rumor and Sell the news " sort of flow. How far can we pull up ahead of next week's announcement? Well we are already up 31 pips.. and our next weekly resistance zone is at 1.09427, or about 63 Pips away. I cant see why not, on this buy the rumor sell the news kind of flow, that we could reach that price level. The monthly candle is bullish after all and we are rejecting the monthly support level . So 1.09427 is our weekly bullish target. For the Short term, I liken pullback scalp buys off 1.08672 or scalp sells off 1.08845 daily level and 1.08945 4hr zone. The Daily candle today closed bullish, in line with the previous Daily candle from Friday.. which was a solid bullish candle in of itself. In our previous analysis, we were biased towards sells but after what the ECB policymakers are saying and the price action so far this week, we must remain flexible in our approach. We did suggest some places to look for longs in our previous analysis and did indeed callout potential longs, in advance, from the daily low of today at 1.08420 1hr support zone. The link for that analysis will be below so go check it out. Otherwise, safe trading everyone!
Note
1hr chart EurUsd : Traders.. We outlined that pullback buys off weekly level could warrant a good trade setup. We returned to this price level shortly after London open and observed a very nice continuation of momentum to the upside off this level. This trade setup planned and called out ahead of time🙂 We also outlined a potential sell setup off 1.08845 Daily Level, which also coincided with the previous week's High price. Both strong confluences for taking a position and Boom💥we observed a selloff from this level of 25 Pips.
At the moment, Price has bounced back up as the Eur still appears quite strong ahead of It's Interest rate annoucement next week. The "Buy the Rumor and Sell the News" backdrop is still in play in my opinion.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.