GDP Is Out: Full Report Later, Quick Levels For EUR/USD
Shain Vernier • 2 min read
The U.S. Gross Domestic Product (GDP) numbers are out, and we will cover those releases in depth a bit later on today. Currently, my colleague Skerdian has a shorting recommendation on for the EUR/USD. If you are in on this signal, kudos! The FX Leaders team has put together a great run of trades facing the USD this week, and this looks to be another one.
In the event that market sentiment shifts considerably against the overbearing trend, I have a few levels that will be worth evaluating. So, let’s get to it!
Earlier this week, I covered the gap down on open for the EUR/USD. Since then, it has been more weakness and extension to the bear.
EUR/USD, Daily Chart
A few levels to be aware of moving forward:
Currently, trade is within Wednesday’s extremes, 1.1794-1.1716.
38% Fibonacci retracement of the bear run is 1.1826.
50% Fibonacci retracement of the bear run is 1.1860.
Bollinger Band MP is 1.1873.
August spike low at 1.1662.
The U.S. Federal Reserve simply will not quit. Today has the Fed’s Esther George (9:45 AM EST) and Stanley Fischer (10:15 AM EST) speaking. Keep a close eye on sentiment during these comments, as many believe there may be some dissent from Yellen’s statements earlier in the week.
Bottom Line: GDP was released a few minutes ago in stride with projections. It will be interesting to watch the Fed comments today in the wake of this news.
For now, the bearish trend is prevailing. In the event that this market is unexpectedly shaken, a short from the 38% level of 1.1820-26 is a premium trade location. A stop above the 62% retracement at 1.1895 with a 1:1 R/R will provide a great opportunity to take an intermediate-term short position.
As always, trade smart and for tomorrow!