The EUR/USD has posted gains for this Thursday session and is in position to close on the bull. At press time, price is off of intraday highs (1.1839) but remains above a significant area of daily support. Will the EUR/USD turn south before the weekend close?
Let’s take a look at this market and see if we can determine a likely scenario or two for the Friday session.
Eurozone GDP
During the wee hours of the morning here in the U.S., the Eurozone GDP report was released to the public. The numbers came in as predicted on a monthly (0.4%) and yearly (2.5%) basis. The coming 24 hours offer several items that may bring additional players to the EUR/USD market:
Country Event
China Trade Balance (May)
Germany Industrial Production (April)
Eurozone ECB Yves Mersch Speech
U.S. Wholesale Inventories (April)
Perhaps the most important item on this list will be the import/export data coming from China. With the recent strife over a U.S./China trade war, it will not be a surprise if strong verbiage accompanying the Trade Balance report is put out by the Chinese government. If that happens, look for Twitter to light up with a response from President Trump and the USD to react accordingly.
EUR/USD Technicals
In a recommendation from yesterday, I outlined a short trade in the EUR/USD. The play produced a max positive move of 16 pips before being swept out.
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Bottom Line: As of this writing, it appears that buyers and sellers are duking it out just above the 1.1810 handle. If this market consolidates and closes near 1.1800, a short position trade will set up for the weekend.
For Friday’s session, I will be selling beneath Thursday’s low at 1.1771 with an initial stop above today’s high at 1.1840. The trade management for this play will be dynamic depending upon where the support and resistance levels fall on today’s close.
Be sure to check the Comments section below for relevant updates on how to manage this trade as it unfolds.
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