Yesterday we closed manually our long term sell signal in EUR/USD. We opened it a few weeks ago when the price was climbing higher from a pullback lower around 1.1550. We decided to close it before the FED interest rate decision.

It was a good decision since the USD got beaten up, despite the interest rate hike. I mentioned yesterday in the midday brief that the forex market had anticipated the rate hike. So, it was sort of priced in already.

However, we got our pips. Today the USD is around 100 pips lower and EUR/USD is around 100 pips higher. We are above 1.18 where we opened the previous sell signal, so why not consider another one?

Looks like the trend for EUR/USD has changed despite yesterday’s jump

I’m not expecting any bullish news for the Euro coming from the ECB (European Central Bank). On the other hand, the USD has no reason to decline further for the time being.

Although, we might see another push higher from the buyers, so I’m waiting for that attempt. Hopefully, it will take us a bit higher above 1.19. That would be a great area to look for shorts because the 1.20-21 level has been established as a top for this forex pair. The risk/reward ratio would be a lot better up there, so let’s wait for the next push, hopefully it comes today.