EURUSD HOLDS AROUND 1,2330 AS THE MARKET CONDITIONS IMPROVE!
Updated
Hello traders,it's been a while since my last article and i understand all the complaints from some of you that's why i am apologize,the reason was the extra work at my office lately as volatility kicked off lately and we had a lot of orders piled in from our customers.
Now let's see what's going on with the EURUSD pair:
1.The EUR/USD is trading around $1.2330, slightly higher on the day.
2.Political news made way to US bond yields as the main driver.
3.The technical picture is balanced in the short term and bullish in the longer-term.
FUNDAMENTALS
1.The pair had initially reached a high of $1.2364 on the news that Germany will have a government nearly six months after the elections. The Grand Coalition is seen as favorable to the euro and the euro-zone in general.
2.The pair later dropped sharply and hit a low as the results of the Italian elections emerged. No party or alliance won an outright majority. The hung parliament and the rise of non-mainstream parties weighed on the common currency but these fears later subsided.
3.Data in the euro-zone was a tad below expectations. The Sentix Investor Confidence dropped to 24 points against 31.1 projected. The The euro-zone Services PMI was downgraded to 56.2 points from 56.7 in the initial print. These are both second-tier indicators.
TECHNICALS
1.Price is consolidating for now but is way above the 200EMA which shows us that we are in consolidation short-term but still in a bull market longer term.
2.RSI is slightly above 50 level which indicates lack of momentum but as we said earlier is logical as we are currently in consolidation before a strong continuation upwards.
3.As i show at the chart we had an advanced bullish pattern but now is late to participate in this trade as the R/R ratio is no longer favorable.
4.We have very strong support due to previous resistance zone which now acts as support.The same zone we used for our 100pips short trade.
5.We have also very thic Ichimoku clouds support which coincides with the advanced pattern,the support zone and the last bounce we saw from the price action.
6.We also have as support the ascending trend line respected a lot of times during the last 5 months.
7.Perfect bounce from the 61,8% Fib level.
POSSIBLE TRADES
WE CAN WAIT A PULLBACK AT 1.2230 LEVEL
SL AT 1.2060 WIDE STOP LOSS BECAUSE OF THE WIDE CONSOLIDATION
TP AT PREVIOUS HIGHS AT 1.2550
OR WE CAN BE MORE CAUTIOUS AND WAIT A BIGGER PULLBACK TO PARTICIPE LONG AT 1.2160 LEVEL WITH
SL AT 1.2060 AGAIN
AND TP AT PREVIOUS HIGHS AT 1.2560
THANKS FOR SUPPORT!
HAPPY PROFITS TO EVERYONE!
DON'T HESITATE TO COMMENT OR ASK ANYTHING!
Now let's see what's going on with the EURUSD pair:
1.The EUR/USD is trading around $1.2330, slightly higher on the day.
2.Political news made way to US bond yields as the main driver.
3.The technical picture is balanced in the short term and bullish in the longer-term.
FUNDAMENTALS
1.The pair had initially reached a high of $1.2364 on the news that Germany will have a government nearly six months after the elections. The Grand Coalition is seen as favorable to the euro and the euro-zone in general.
2.The pair later dropped sharply and hit a low as the results of the Italian elections emerged. No party or alliance won an outright majority. The hung parliament and the rise of non-mainstream parties weighed on the common currency but these fears later subsided.
3.Data in the euro-zone was a tad below expectations. The Sentix Investor Confidence dropped to 24 points against 31.1 projected. The The euro-zone Services PMI was downgraded to 56.2 points from 56.7 in the initial print. These are both second-tier indicators.
TECHNICALS
1.Price is consolidating for now but is way above the 200EMA which shows us that we are in consolidation short-term but still in a bull market longer term.
2.RSI is slightly above 50 level which indicates lack of momentum but as we said earlier is logical as we are currently in consolidation before a strong continuation upwards.
3.As i show at the chart we had an advanced bullish pattern but now is late to participate in this trade as the R/R ratio is no longer favorable.
4.We have very strong support due to previous resistance zone which now acts as support.The same zone we used for our 100pips short trade.
5.We have also very thic Ichimoku clouds support which coincides with the advanced pattern,the support zone and the last bounce we saw from the price action.
6.We also have as support the ascending trend line respected a lot of times during the last 5 months.
7.Perfect bounce from the 61,8% Fib level.
POSSIBLE TRADES
WE CAN WAIT A PULLBACK AT 1.2230 LEVEL
SL AT 1.2060 WIDE STOP LOSS BECAUSE OF THE WIDE CONSOLIDATION
TP AT PREVIOUS HIGHS AT 1.2550
OR WE CAN BE MORE CAUTIOUS AND WAIT A BIGGER PULLBACK TO PARTICIPE LONG AT 1.2160 LEVEL WITH
SL AT 1.2060 AGAIN
AND TP AT PREVIOUS HIGHS AT 1.2560
THANKS FOR SUPPORT!
HAPPY PROFITS TO EVERYONE!
DON'T HESITATE TO COMMENT OR ASK ANYTHING!
Note
Pullback as expected,driven by news but technical analysis and fundamentals agree on that move so be prepared to enter on our long trades...!Note
Great profit since the trigger at 2018-03-21 for the first pullback as expected...Note
We can see that the long term black trend line is still holding so we are looking for long trades!
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