EURUSD – SELL – 24th July 2020

EURUSD – SELL – 24th July 2020 (Closed)

Good morning team,

Tensions between the US and China appear to be escalating on both sides. Looking at where the market is positioned across tech stocks and the DXY we may see the risk off theme continue throughout today and into next week. US China tensions are coming back into the forefront of the news. One thing to keep in mind, if Trump falls behind in the polls for the US election, he may look to escalate tensions with China in an attempt to gain support from the public.

We are looking too position in a risk of mode today.

Firstly the DXY is on a historic trend line and major support zone.

Currently US Indices and the DXY are moving in an inverse correlation. A weaker USD is supporting higher stock prices and vice versa. As tensions rise USD will gain strength due to safe haven appeal and stocks prices should fall.

EURUSD Weekly Charts

EURUSD has approached a key negative trend line which has provided resistance for over 10 years. The 1,1600 level also appears to be a major resistance zone.

EURUSD Daily Charts

RSI is becoming compressed inside a triangular formation. Due to where the market is positioned we see this potentially breaking to the downside of the triangle. We are looking too position on this peak for a sell.

Trade Setup: SELL Market execution, current price 1.1595, stop loss 1.1675 and take profit left to run. 

Stop loss: 80 pips

Trade Setup
SELL - Market Execution

Entry
1.1595

Take Profit
OPEN

Stop Loss
1.1675