Sell the rally on EUR/USD
Skerdian Meta • 1 min read
Yesterday at 2:30 GMT the US core orders and the durable orders took a massive dive. The expectations were for an increase of 0.6% month on month, but they contracted 0.8% and 3.4% respectively. That´s a big miss for a single month, but the US economy still remains the best performing one if you compare the major economies and the USD is the best place to put your money at the moment. So my opinion was to sell this pair when the news was starting to fade.
The technical analysis supports this scenario as well. The move up looks to be over because the pair is nearly 300 pips above the Monday low. The 4 hour chart is severely overbought, so EUR/USD will either resume its downtrend and break the previous lows, or at least make a pullback of 60-100 pips. That´s the reason we decided to open a sell position in this pair.