EUR/USD Aiming For The Big Level! It’s Make It Or Break It Time
Damn this relentless Euro buying and Dollar selling. The Euro is founding fresh bids everywhere out of nowhere, while the USD is getting smashed for no reason, so EUR/USD is having the time of its life.
It has been broken level after level on the top side and now it is trying to break the last line in the sand, which stands at 1.1715.
This is the big level everyone is watching for
Looking at the weekly EUR/USD chart, you can see that this level was the highest price in 2015. If you remember, during that time the Chinese stock market was going through a crash which started a panic in the global financial markets and this forex pair climbed several cents in a few trading sessions.
Now, that is the level everyone is watching. Although, 1.17 is an important level as well, since it is a big round number and not too far from the line in the sand.
EUR/USD bulls took the price to 1.1715 just a few minutes ago but have retreated back below 1.17 now. I was thinking of opening a small sell position around 1.1715 but the retreat happened too quickly.
This is a good opportunity to sell because the reward potential is quite big; the first target would be around 1.15, then 1.14, 1.12, 1.11 and 1.10. I don´t know how far below we might reach if this pair decides to make a decent retrace lower, but 300-400 pips is more than enough.
But there´s one huge problem for us: the US healthcare bill will potentially go through the Senate later in the afternoon. If Republicans fall in line and vote the bill, then, it´s likely that the USD will surge and EUR/USD will tumble.
If, however, they fail to pass the bill again, then the market will be really worried that Donald Trump can´t bite domestically and the tough times will continue for the USD.
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