EURUSD – BUY Trade Setup – 13th January

EURUSD – BUY Trade Setup – 13th January (Closed)

Good afternoon Forex Kings,

We have a very exciting month upon us as we enter earnings season for US corporations as well as the signing of the phase one trade agreement this week between the US and China.

The market has priced in a trade agreement as US indices reach record highs, therefore the only big move may be lower if there are any stumbling blocks. In addition, any big misses on earnings from the major players in the US (Microsoft, Apple, Amazon and Facebook) could see a large pull back. We will be watching this very closely as the month progresses.

Today we are looking at the devaluation on the US. Previously the USD Index broke a key trend line which is had been obeying for the last two years.

USD INDEX

The USD Index has now retested the trend line and has been rejected. We could now see a weaker USD throughout the rest of the week. This week the US will announce its CPI (inflation) which is the cost of living. They are forecasting a decline in CPI which also supports a weaker USD scenario.

This means we can look to pair the USD with another currency to trade against.

The EURUSD has set up with a nice technical pattern which has worked previously.

EURUSD 4 Hour Charts

As you can see the inverted head and shoulders pattern worked previously between April and July 2019. Generally speaking once you see an inverted head and shoulders pattern, there will be a break above the neck line to the next level of resistance.

There is now a potential inverted head and shoulders pattern with the neck line being set at 1.1240 and the next resistance being set at 1.1280.

EURUSD 4 Hours

Trade Set Up 1: Entry BUY LIMIT 1.1080, stop loss 1.0980 and take profit 1.1280

Take Profit: 200 PIPS

Stop Loss: 100 PIPS

We may enter sooner if the trade is not activated. We will notify you all via text message and telegram.

 

Trade Setup
BUY LIMIT

Entry
1.1080

Take Profit
1.1280

Stop Loss
1.0980