Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.1289)
Some points to consider in this Forex market:
- Dark Cloud forming, indicating possible top in place.
- Risk to reward analysis argues against a short or long euro trade now.
- Trade Strategy: Stand aside
The EUR/USD Forex market is setting itself up for another move lower, as the below daily MT 4 chart is showing a dark cloud candlestick pattern forming. Last week, we saw the EUR/USD gap sharply higher after the FOMC decided to keep rates unchanged. Since then, the euro has erased all of its gains after finding stiff resistance around the 1.15 pivot.
Technical Analysis
Let us now look at today’s EUR/USD technical analysis. There is near term technical support lining up at 1.1219/20. A daily close below this technical support challenges the next technical support lining up at 1.1145. The alternative EUR/USD technical analysis, should the euro reverse course and move higher, notes technical resistance lining up at 1.1310. A break above this technical level challenges the technical resistance lining up at 1.1367/68.
Trade Strategy
Let’s now look at today’s EUR/USD trade strategy. The available trading range is less than 100 pips. This is way smaller than the average trading range (ATR). From a risk to reward analysis, there is no long or short euro trade at this time. Price action is wedged between a technical support and resistance level. Taking all of this into account, including the upcoming European Central Bank (ECB) monetary policy meeting, I will opt to stand aside and monitor my charts for a better trade opportunity to come along. Today’s EUR/USD Forex market’s trade strategy is flat.
