EUR/USD - Looking Shaky, Where To Next?
Good Morning traders, this is my first article back after an incredible trip out to LA. Teaching over 25 students in one of the best countries in the world was a surreal experience. The knowledge Shaun and Natt were dropping over the two days was mind-blowing!
I have been watching this pair (EUR/USD) very very closely for some time now, my fundamental knowledge of these two economies combined with my technicals has given me a very high hit rate on the pair. We know the higher time frames are very bearish but running into some good support at 1.12.
Drilling down into the lower time frames to time our entry, we can see a break and re-test of the 1.12 level more defined. The last 3 days have given us multiple wick rejections off this level, showing us that there is some major resistance now at 1.12.
If we look at the flip side of EUR/USD which is the DXY, this has broken above a major resistance level seen at 97.50, we have come back to re-test this and now we await a run up higher to confirm this.
Invalidation of this idea would be a break and closure above 1.1225 on the daily timeframe. This would suggest that momentum to the upside is coming into play and would negate our trade idea.