Good morning Forex Kings,
A busy day for the EUR as they report the next round of manufacturing data.
Keep in mind even prior to the corona-virus outbreak manufacturing in the EU was below the 45 handle which indicates a recession.
This round of data could get ugly as the EU has been in quarantine for a couple of months now.
Get your alarms set for 5:55pm this evening. We are going to be entering the position now in anticipation of the result.
Secondly, the USD index has broken a pennant formation suggesting we could see further upside as investors want to hold USD during these uncertain times.
EURUSD Technical Analysis
Initially we were fairly bullish on the EURUSD as the currency pair had broken a negative trend line. However as Germany and Netherlands are refusing to bend the knee and partake in the Eurobonds we could see further pressure on the EURO in the short term. Germany and the Netherlands are refusing the share the corona-virus debt burden as Italy are already under severe financial pressure.
Trade Setup: SELL -Market order (current price 1.0810), stop loss set at 1.0910 and take profit 1.0650.
Stop loss: 100 PIPS
Take Profit: 160 PIPS