1.1100 Back In View For The EUR/USD
It has been a quiet day on the forex, but one of the more active pairs has been the EUR/USD. Rates are off more than 50 pips and falling as the late-session approaches. As we roll toward Tuesday’s trading day, it appears as though 1.1100 will come back into play very soon.
All in all, it has been a quiet day on the economic calendar. However, things will begin heating up at 2:30 PM EST with comments from the ECB President Lagarde. While no policy issues are expected to be addressed, the EUR/USD will still likely experience some action. If the early-week bearish sentiment is extended, then a buying opportunity may come into play. Let’s dig into the daily technicals and see if we can determine which direction this market is headed in the near-term.
EUR/USD Retraces Toward 1.1100
Sellers are winning the day in the EUR/USD, with rates trending south over the past 24 hours. Unless Lagarde takes an unexpectedly bold stance later today, the bearish pressure is likely to continue.
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Here are the levels to watch for the immediate future:
- Resistance(1): Spike High, 1.1171
- Support(1): Daily SMA, 1.1126
Bottom Line: After a strong October, the intermediate-term trend is bullish for the EUR/USD. Although values are on the slide today, the uptrend in this market remains valid. If given the opportunity, buying a dip isn’t a bad way to get in on the action.
Until elected, I will have buy orders in the queue from 1.1128. With an initial stop-loss order at 1.1094, this trade produces 25 pips on a slightly sub-1:1 risk vs reward ratio.
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