Good morning team,
Today we are taking a look at the EURUSD as the USD now appears to have found support after the strong unemployment and Non Farm data on Friday night. This week the economic data is pretty low from the US apart from the US initial Jobless Claims on Thursday night. With the unemployment rate falling on Friday we may potentially see some more positive data on Thursday night from the US. The EU also reports its GDP data on Friday forecasting at -15% YoY and -12.1% QoQ. We are now looking to enter the EURUSD expecting some further downside.
EURUSD – Daily Charts
- RSI has broken a through a major inclining support level signally further downside.
- Bearish divergence on the RSI highs and market highs at 1.1900.
- Fake break above the inclining channel formation.
- Rejection from the resistance zone at 1.1800.
EURUSD – 1 Hour Charts
The pair is currently trading on a minor support level at 1.1725. We are either waiting for the market to retrace towards a potential right should level at 1.1800 or for a clean break at 1.1725 followed by a retest. We will position with a sell limit anticipating a retracement higher, however watch out for a clean breakout.
Trade Setup: EURUSD – SELL LIMIT – Entry 1.1800, stop loss 1.1885 and take profit 1.1600.
Stop loss: 85 pips
Take profit: 200 pips