Good morning Forex Kings!
GREAT month last month! Amongst all the uncertainty in Australia and around the globe, you all have smashed it! Keep up the good work.
Today we are continuing our set up on the EURUSD. I personally took profit to early on the pair, it went to the exact take profit level identified in the analysis previously.
This trade is very much technical based. Fundamentally, in Europe they appear to be reaching a peak in the total number of corona-virus cases which is a great sign. America now has a total of 165 thousand cases. There is also a risk of the virus spreading to other parts of the US and creating additional outbreak zones.
President Trump is set to announce a 90 day deferral for some tariff payments. Yes, we all forgot about the US V China trade war which is still yet to be resolved. Once this is announced it should also provide some strength into the ‘risk on’ mode. During risk on, the USD generally devalues, stocks rally along with commodity related currencies.
EURUSD – Monthly charts
There is a huge indecision in the market. Currently everyone is try to guess whether the market is going to drop further, or avoid a complete market crash. Governments and central banks are doing all they can to keep markets alive.
EURUSD – 4 hour Charts
The EURUSD has now completed a A-B-C corrective structure lower. We are now looking for a 5 wave structure higher.
EURUSD – 1 Hour charts
We are looking to buy with a fairly tight stop loss, a key level to initially aim for is the 1.1140 level. We are going to see a pull back along the way. Once we see a pull back from Wave 1, we will look to enter an additional position. I will let you all know if and when that happens.
Trade Setup: BUY EURUSD (Market Order, current price 1.1032), stop loss set at 1.0970 and take profit at 1.1140.
Stop Loss: 62 pips
Take Profit: 108 PIPS