Selling EUR/USD At The Top
Skerdian Meta • 1 min read
Yesterday evening, EUR/USD lost about 70 pips after the FOMC statement was released. As we mentioned in the first market update today, the market took that statement as dovish so the USD got some attention at last.
But today we had some positive economic data coming from Europe which has since reversed all of yesterday's decline. Eurozone retail sales rose by 0.3% this month compared to an expected 0.1%, while the year-on-year number rose by 2.3%.
This is the third month of solid gains so a positive trend is forming here. Besides that, the Eurozone service PMI report was also positive.
As we said, EUR/USD surged in the last few hours; it got close enough to the top so we decided to take our chances.
The high so far has been 1.0941 which is the highest this forex pair has been since last November when Donald Trump won the US elections.
The chart setup looks favorable for us
The H1 forex chart is severely oversold and the H4 chart is getting there too. We think that a 30 pip pullback is due and the odds are high. Right now we´re about 10 pip in profit so we´re in the right direction.