By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 1.3870 – 1.3950
Take Profit Zone: 1.3370 – 1.3450
Stop Loss Zone: 1.4100 – 1.4150
The EURUSD is currently trading at the bottom of a very strong resistance level after the Euro was pusher higher against the US Dollar. Forex traders continue to wait for the European Central Bank to move on either stimulus or a cut in interest rates as the threat of deflation seems to increase. The next consumer price index report out of the Eurozone could start a period of profit taking in the Euro which could push the EURUSD back down to support.
This currency pair has rallied more on the back of US Dollar weakness as an increasing amount of economic reports have been released which have pointed towards a weaker economic than expected. Friday’s non-farm payroll report will be a very crucial factor. The view is on a positive surprise which would add to selling pressure in the EURUSD.
