Good afternoon Forex Kings,
A nice entry on the AUDUSD. Tonight we are focusing on the EURUSD as they announce their interest rate decision. Rates are expected to be kept on hold as they are already in negative territory.
Our pending orders on the AUDNZD and CADJPY have been closed off.
Traders will be looking to the policy statement at 00:30am for an indication of the future guidance.
The ECB has indicated a ‘strategic review’ for the Eurozone will take place on the 23rd January. This may be an indication that the ECB will place less reliance on the quantitative easing going forward.
The DXY has been rejected from the trend line meaning we could see a devaluation of the USD.
EURUSD – 4 Hour Charts
Elliott wave analysis would suggest we are currently in wave 4c, which is the end of a corrective structure. We are expecting the next move to be bullish creating a 5th wave made up of a five wave structure. However we are going to place an additional trade slightly lower incase of a move to the next support level before a rally.
Trade Setup: BUY LIMIT – Entry price 1.1040, stop loss set at 1.0990 and take profit set at 1.1150.
Stop loss: 50 PIPS
Take Profit: 110 PIPS