Hello traders
I have utilized MTF(Multiple Time Frame) analysis for this idea in addition to the current fundamental environment.
The previous weekly levels can often be a good starting point for where this widely traded pair may head next.
On these charts, price has failed ahead of the weekly close of 1.1775. So far.
Fundamentally, the details of the USA/Euro Zone trade deal or framework for a deal, are not very clear yet. Which industries will be hit the hardest in Europe? Fine French wines, Stinky Swiss cheese, Monster M cars from BMW? Take your pick. In my mind, as a consumer, both the USA and the Old Country have significant strengths in different arenas.
As American consumers, we are now going to be forced to some degree to become price conscious one way or the other. Or maybe not. I'll still be sipping California, French or New Zealand wines.
As for the economy:
These "deals" DJT has made so far with Japan and the Euro Zone, once again, smacks of a strong arm policy, more than a reasonable and fair agreement. Time will be the deciding factor. As we have seen over time, trade agreements mean nothing. The WTO is a toothless institution.
The IEEPA ruling heads for the Federal Appeals Court this week and no doubt all the way to the Supreme Court.
However, based on the available information, I am observing the charts by looking back at how the markets react at the Sunday open. It tends to retest weekly OCHL levels first.
As for the USA/EURO zone deal, if it plays out according to news reports, it seems to be logical that a lot of Euros will have to be converted to USD.
But feel free to correct me.
Therefore, until Wednesday and the FOMC presser, I am short EUR/USD.
Best of luck.
I have utilized MTF(Multiple Time Frame) analysis for this idea in addition to the current fundamental environment.
The previous weekly levels can often be a good starting point for where this widely traded pair may head next.
On these charts, price has failed ahead of the weekly close of 1.1775. So far.
Fundamentally, the details of the USA/Euro Zone trade deal or framework for a deal, are not very clear yet. Which industries will be hit the hardest in Europe? Fine French wines, Stinky Swiss cheese, Monster M cars from BMW? Take your pick. In my mind, as a consumer, both the USA and the Old Country have significant strengths in different arenas.
As American consumers, we are now going to be forced to some degree to become price conscious one way or the other. Or maybe not. I'll still be sipping California, French or New Zealand wines.
As for the economy:
These "deals" DJT has made so far with Japan and the Euro Zone, once again, smacks of a strong arm policy, more than a reasonable and fair agreement. Time will be the deciding factor. As we have seen over time, trade agreements mean nothing. The WTO is a toothless institution.
The IEEPA ruling heads for the Federal Appeals Court this week and no doubt all the way to the Supreme Court.
However, based on the available information, I am observing the charts by looking back at how the markets react at the Sunday open. It tends to retest weekly OCHL levels first.
As for the USA/EURO zone deal, if it plays out according to news reports, it seems to be logical that a lot of Euros will have to be converted to USD.
But feel free to correct me.
Therefore, until Wednesday and the FOMC presser, I am short EUR/USD.
Best of luck.
Trade closed manually
Short position closed at 1.1605. A long position from the weekly high at 1.1573 that has just been tested makes sense, so therefore, I have pivoted to a long EUR/USD position after the 4H close at 1.1588 with a tight stop below the swing low of 1.1557. A lot of risk triggers on the economic calendar until the end of the week. Play the field but don't shed any tears if and when the market bites you in the behind. Risky business, this Forex trading. Stay nimble and realistic.
And best of luck.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.