Forex Marketz Daily Forex News – Fully Markets Update
The EUR/USD Forex market is setting up to turn lower. The euro had been inching higher against its US Dollar candlestick before stalling below the 1.12 pivot. The EUR/USD now appears to be forming a three inside down candlestick on its way lower.
Technical Analysis
Let’s look at today’s EUR/USD technical analysis as the euro turns lower, after hitting its highest level in over a month. There is resistance lining up at 1.1194. A daily close above this technical resistance level challenges the next technical resistance level at 1.1288. The alternative EUR/USD technical analysis, shows technical support lining up at 1.1048. A break below this support challenging the next technical support at 1.0987.
Trade Strategy
Looking at today’s event risk, there is not much on the economic calendar that should cause volatility in the EUR/USD forex market. We have some data coming out of the United States later today in the forming of housing permits and starts. Neither should cause a lot of Dollar volatility.
With that said, I will need to rely on my charts and technical analysis for a trade decision today. Price action in the EUR/USD Forex market is too close to a technical support level to justify a short euro trade in line with my outlook on the single bloc currency. From a risk to reward perspective, timing is not right. There are no bullish reversal signs at this time to warrant a long EUR trade. Timing is premature. I will opt to stand aside and monitor my charts for a more opportune trade strategy to come along, treating any EUR/USD moves higher as a correction giving me a chance to go short EUR. For today, I am flat in the EUR/USD Forex market.