EURUSD – BUY – 5th February

EURUSD – BUY – 5th February (Closed)

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.

Technical Analysis

USD Index

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)

Trade Setup
BUY

Entry
1.1042

Take Profit
1.1165

Stop Loss
1.0970