Good afternoon Forex Kings,
The markets appear to have settled this morning with not too many large gaps from the weekend.
The USD took a huge loss last week after the 2 trillion dollar stimulus package, as well as the initial jobless claims sky rocketing. This is set to get worse in the US over the coming weeks, however short term we see the USD as being oversold against a number of currencies.
Additionally, the USD is seen as a safe haven currency, it generally performs well during times of uncertainty and increased risk. There has been some large swings over the coming weeks, therefore it is beneficial to keep stop losses tight.
Corona-virus appears to be escalating in the EU at an alarming rate, Spain and Italy continue to report additional cases and unfortunately 1000’s of more deaths per day. The whole of the EU is pretty much in lock down which will weigh down the EUR.
EURUSD – 4 Hour charts
the 1.1180 level appears to be a key resistance zone.
EURUSD – 1 Hour Charts
There has been a five wave structure higher from the double bottom at 1.0650. The third wave is roughly the 161.8% FIB extension from wave 1. We may now see a A-B-C corrective structure lower
Trade Setup: SELL EURUSD – (market price 1.1110), stop loss is set at 1.1200 and take profit 1.0950
Stop loss: 90 PIPS
Take Profit: 160 PIPS