Victory Loves Preparation-Trading The EUR/USD
Shain Vernier • 1 min read
The word on everyone’s tongue is FED. Make no mistake this week’s USD markets are going to experience turbulence surrounding the ongoing FOMC meeting. If you are planning on engaging the majors during this charged news cycle, be sure that your trading plan is rock solid.
Success is often measured by what we don’t lose. That being said, we need to trade to earn, so let’s dig into this week’s EUR/USD market.
As I write this, I see that we have an open signal facing the EUR/USD over at the FX Leaders signal page. Kudos to all that are involved in that trade!
EUR/USD Daily Chart
For now, we are seeing sideways action out of the EUR/USD. A few technicals:
Trade is firmly inside of last week’s range
Robust support level at the Daily SMA 1.1877
Resistance at 50% retracement of 1.1965
Resistance at 62% retracement of 1.1994
Until there is a breakout of last week’s range, this market is compressed. The coming economic releases are likely to stimulate a run at the swing high of 1.2091 or last week’s low of 1.1838. These areas will be hotly contested and produce some great short-term trade setups.
Overview: Moving into the FED dominated news cycle, we will see more short-term volatility in the EUR/USD. The big question is can anything stop the yearly bull market facing the EUR/USD?
Perhaps. A substantial rate hike from the FED on Wednesday may just be the catalyst that the bears are looking for. A .25 hike will show commitment to a tightening policy facing the buck for the rest of 2017. This will likely depress EUR/USD pricing, possibly prompting a full-blown correction.