The EUR/USD, for the most part, has been incredibly wild. It’s fair to say that the price action has been very strange and quite a tricky trade over the last week.
In the short-term, it has in fact been a little bit on the choppy side. So I would prefer to try and avoid that chop all together and look for some longer-term moves. I think the fact that the Trump tax cuts – that I wrote about in the morning preview – are getting closer to reality, and that is a huge boost for the USD and will hurt the EUR.
Money will start flowing out of Europe and into the US. If the tax deal can get done by Christmas then I see more weakness in the EUR/USD. As it stands the FX Leaders Team have a sell signal on the EUR/USD with a downside target of 1.1540, which I think is a good looking trade.
For short-term trades, I will be targeting the key levels to try and find an entry.
Key Support and Resistance Levels
Support | Resistance |
1.1850 | 1.1928 |
1.1812 | 1.1942 |
1.1800 | 1.1957 |
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