More Consolidation For The EUR/USD - Forex News by FX Leaders
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More Consolidation For The EUR/USD

Posted Monday, March 18, 2019 by
Shain Vernier • 1 min read

Without a doubt, this week will be one of the biggest for the EUR/USD in recent memory. Key market drivers are scheduled throughout the coming 4 ½ sessions, highlighted by a pivotal Wednesday forex session. Given the recent consolidation pattern on the daily time frame, it appears that the EUR/USD is gearing up for a directional move.

Wednesday will bring an abundance of fundamentals, especially to the EUR/USD. Here is a quick look at the schedule facing this pair for the Wednesday, 20 March forex session:

  • German PPI (Feb.)
  • Non-Monetary Policy ECB Meeting
  • U.S. FED Monetary Policy Statement
  • FOMC Economic Projections
  • U.K. Parliamentary Brexit Vote

EUR/USD Technical Outlook

In many instances, the period before release of key market fundamentals proves dull. Prices show a tendency to consolidate as traders hesitate to take one side of the market or the other. This phenomenon is exactly what we seeing in the EUR/USD.

EUR/USD, Daily Chart
EUR/USD, Daily Chart

At press time, rates are hovering above these key downside support levels:

  • Support(1): 62% Retracement, 1.1326
  • Support(2): Bollinger MP, 1.1317
  • Support(3): Daily SMA, 1.1307

Bottom Line: While anything can happen in the short-term, this market is likely to remain quiet ahead of Wednesday’s action. If so, going long from the downside support area between 1.1326 and 1.1307 offers minimal risk given a reasonable profit target.

Until the Wednesday forex session, I will have longs queued up from 1.1311. With an initial stop at 1.1284, this trade produces 25 pips on a slightly sub-1:1 risk vs reward ratio.

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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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