Let’s Wait for the New Year Before Shorting EUR/USD - Forex News by FX Leaders

Let’s Wait for the New Year Before Shorting EUR/USD

Posted Monday, January 1, 2018 by
Skerdian Meta • 1 min read

The Buck started the year terribly and it is ending it in the same way. The reverse lower came as a surprise at the beginning of this year, but it proved to be sustainable throughout the year, so now it is not such a big surprise to see the USD close the last days on the back foot or EUR/USD near the top.

EUR/USD has pushed more than 100 pips higher this week despite the holiday period. It reached 1.1988 on my forex platform this morning which is one step away from 1.20. I have been thinking for some time about opening a long term sell forex signal around here in this pair.

1.29 is a good place to sell, but I like to see 1.21 first

The problem is that we are seeing a relentless push higher at year-end. It is true that cash flows drive the markets around at this time of the year, considering the thin liquidity now. But, this sort of price action looks a bit scary for sellers.

The market will return to normal next week, so I’d like to observe the price action for some time before making a decision. The 1.20 level is a big round one and it might as well be the top for this forex pair. But, the price got close to 1.21 earlier this year, so we might see those levels again before turning down.

That, together with the price action of the recent days has left me on the sidelines for now. So, I will try to restrain myself today and not open a long term sell forex signal right now. Let’s see what the new year brings for us.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
With the Good Friday and Easter holiday, we don’t have very many potential market-moving economic events to throw on the watchlist....
12 hours ago
The financial markets remain closed on the back of Good Friday, however, the forex pairs are still active. Watch out the major trading level
15 hours ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of