U.S. Forex Preview-EUR/USD Fibonacci Long - Forex News by FX Leaders

U.S. Forex Preview-EUR/USD Fibonacci Long

Posted Wednesday, January 17, 2018 by
Shain Vernier • 2 min read

The lead financial stories of 2017 are dominating headlines thus far in 2018. Bitcoin and U.S. equities appear destined to be permanent fixtures in every trader’s mind. Today’s session returned the DJIA and S&P 500 to near-all-time highs. On the other hand, Bitcoin suffered devastating losses, driving valuations under $10,000. Use of the term “bubble” is becoming more and more prevalent in the reporting of both asset classes.

USD
Bubble Talk Is Dominating Headlines Of U.S. Indices And Cryptocurrencies.

It is time once again to take a look at the important economic events of the next 24 hours:

Country                             Event

U.S.                                   API and EIA Crude Oil Stocks, Construction Reports

Australia                           Employment (Dec.)

China                                GDP (Q4)

Japan                                Foreign Investment (Jan. 1)

There are several potential drivers of volatility in the coming hours. I will be keeping close tabs on the GDP numbers out of China. After the recent comments regarding U.S. securities, China’s economic health will be under the microscope. If Chinese GDP lags more than expected, look for heavy action in the international debt markets.

Open positions in the Aussie and USD/JPY must be tended during the Australian employment reports and Japanese investment numbers. Any surprises may influence recent pricing trends.

EUR/USD Technicals

The EUR/USD is experiencing consolidation after the recent bull run. With a bit of luck, we may get an opportunity to go long from a key Fibonacci level.

EUR/USD
EUR/USD, Daily Chart

It is a challenge to find levels on the daily chart during breakaway trends. For the immediate future, there are only two on my radar:

  • Resistance(1): Psyche level, 1.2400
  • Support(1): 38% Fibonacci retracement of current bull run, 1.2167

Bottom Line: Recent trends across the majors have provided an abundance of Fibonacci trades. This one is a long from just above the 38% retracement at 1.2171. With the initial stop at 1.2144, this trade may be executed with a 1:1, 1:2, or 1:3 risk vs reward (R/R). It is a great chance to rack up a potentially large return with the prevailing trend.

As always, trade smart and for tomorrow!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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