EURUSD: Tasty Sell Area If the Dog Pops Up Again & Trump Tweets
The fundamentals:
Many calls for a bearish dollar. Many tech traders are shorting a patter just because, but does a pattern have substance? Remember what happened to GBPUSD in October 2016 when the spike fell in the fundamental direction? I am sure many are still here and have survived that incident. Once again, it has been difficult to trade the dollar fundamentally. I even resorted to scalping and trading tiny time frame, taking profits and pips here and there. It was mentally draining, but we did it (losing and winning all throughout).
I am sure that you guys observed how with every Trump Tweet the dollar has fallen. And, surely enough, the dollar has decoupled FROM its 2-year nominal rate differential because of this, according to Goldman Sachs. Here is a chart that displays this evidence visually:
https://gyazo.com/ffd6b33bfb9e8db058c14e956c702c29
This is something to keep in mind going forward. I am keeping my weekly position open and targeting parity or almost parity.
Technicals:
I have here an intraday chart of the EURUSD. Earlier I took a weekly trade to short the EURUSD. I want to add to my position.
So, I am watching the 1.0591 to 1.0616 area to add to my short position. You can apply any chart pattern and they all align at that area in some way. Then there is the USD's CPI coming out in the next 8 hours that can make or break any pattern with new information.
I have my alarms set for that level if the price of the exchange rate gets there.
Many calls for a bearish dollar. Many tech traders are shorting a patter just because, but does a pattern have substance? Remember what happened to GBPUSD in October 2016 when the spike fell in the fundamental direction? I am sure many are still here and have survived that incident. Once again, it has been difficult to trade the dollar fundamentally. I even resorted to scalping and trading tiny time frame, taking profits and pips here and there. It was mentally draining, but we did it (losing and winning all throughout).
I am sure that you guys observed how with every Trump Tweet the dollar has fallen. And, surely enough, the dollar has decoupled FROM its 2-year nominal rate differential because of this, according to Goldman Sachs. Here is a chart that displays this evidence visually:
https://gyazo.com/ffd6b33bfb9e8db058c14e956c702c29
This is something to keep in mind going forward. I am keeping my weekly position open and targeting parity or almost parity.
Technicals:
I have here an intraday chart of the EURUSD. Earlier I took a weekly trade to short the EURUSD. I want to add to my position.
So, I am watching the 1.0591 to 1.0616 area to add to my short position. You can apply any chart pattern and they all align at that area in some way. Then there is the USD's CPI coming out in the next 8 hours that can make or break any pattern with new information.
I have my alarms set for that level if the price of the exchange rate gets there.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.
Is this to scare you out?