Scalping Opportunity In The EUR/USD
The Greenback has posted significant gains since Tuesday, driving the EUR/USD toward the 1.1300 psychological level.

As far as trading strategies go, scalping is one of the most affordable to execute. Using tight stop losses and modest profit targets can be a great way to engage the markets. Today’s bearish action in the EUR/USD may offer a premium scalping opportunity to the long.
During the U.S. pre-market session, the Producer Price Index (PPI) for October was released to the public. Here is a quick look at the hard numbers:
Event Projected Actual
PPI (MoM, Oct.) 0.2% 0.6%
PPI Except Food and Energy (MoM, Oct.) 0.2% 0.5%
In addition to monthly growth, each figure is up considerably year-over-year. This collection of PPI statistics is more supporting evidence for the FED’s policy of gradual tightening. It is little wonder that today’s CME FEDWatch Index has assigned a 76% chance of a ¼ point rate hike for December.
EUR/USD Technicals
The rout is on in the EUR/USD, with values falling almost 50 pips for the session. The Greenback has posted significant gains since Tuesday, driving the EUR/USD toward the 1.1300 psychological level.
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Bottom Line: At press time, this market is trading in the neighborhood of 1.1320. If the intraday downtrend continues, then a long scalp from just above the Spike Low (1.1301) will come into play. Until elected, I will have buys queued up from 1.1306. With an initial stop at 1.1294, this trade produces a tight 8 pips on a sub-1:1 risk vs reward management plan.
In looking at the long-term picture for the EUR/USD, 1.1300 shows up several times as downside support, twice this year. Eventually, buyers will retreat from this level prompting a bearish break. With a bit of luck, this long scalp will provide a few green pips ahead of a directional move south.
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