Good evening Forex Kings,
This weeks main focus is turning to the US Non Farm Payroll, we have the ‘pre’ round of ADP employment change tonight.
The FED have taken a U turn from increasing interest rates aggressivly in 2018 to cutting into 2019. They are now on a sit and wait approach, however the FED chairman Jerome Powell stated the decision will be data dependant. Trump also wants a weaker USD to compete with international trade.
Looking at the USD index it appears to be creating a head and shoulders pattern, suggesting we could see some downside.
The index is holding at a major resistance level and key trend line. A break above the trend line will invalidate this trade.
We will initially be targeting 1.1165, however long term targets remain at 1.1230+.
Trade Set Up: BUY EURUSD (market order) Stop loss below key support at 1.0970 and take profit set at 1.1165
Stop loss: 72 PIPS
Take Profit: 123 PIPS (We may extend take profit)