Forex Marketz Daily Forex News – Fully Markets Update
Some points to consider in this Forex market:
- The EUR/USD has resumed its fall lower after a hawkish FOMC announcement.
- Short euro sale has hit its first target. Stop loss now at break even.
- Trade strategy: Short euro @1.1058
The EUR/USD Forex market, and the euro in general, took quite a pounding last week, after the Federal Reserve Board (Fed) opted not to change monetary policy, but announced there would be a rate cut before the end of the year. By the end of the week, the euro had managed to reverse some of its losses after a failed test of the August low at 1.0848.
Technical Analysis
Let’s now discuss today’s EUR/USD technical analysis. There is near term technical support lining up at 1.0848. A daily close below this level challenges the next technical support at 1.0805. The alternative EUR/USD technical analysis, should the euro rise, thus supporting this Forex market, notes technical resistance lining up at 1.0978. This is a former support level. A break above this technical resistance challenges the resistance located at 1.1022.
Trade Strategy
Let’s get into today’s EUR/USD daily trade strategy. I have a short euro sale at 1.1058. The trade is moving along nicely as my initial target below 1.10 has been achieved. I will now move the stop loss to break even. This will enable me to leave this short euro trade open to capture further EUR weakness. My trade strategy, for today, remains short in the EUR/USD Forex market. I prefer to remain optimistic as we have the November 3 ECB policy meeting. The core CPI did tick higher which could lead Draghi to adopt a wait and see approach.
