The EUR/USD Poised to Break Key Support

EUR/USD Analysis 6 Nov 2017

EUR/USD Spot Price: 1.1612

Support: 1.1589, 1.1575, 1.1500

Resistance: 1.1650, 1.1690, 1.1700

Trade Ideas - Sell the Bounce

  • Position: Short
  • Entry Point: 1.1675
  • Take Profit: 1.1500
  • Stop Loss: 1.1750

We are currently in a range between 1.1600 and 1.1650 and I am looking for a move below support. We have two options for an entry, selling a pullback or waiting for a break below 1.1600.

For now, I’ll look to enter short on a push to 1.1675. We will target a break and longer move lower.

2017-11-6-eurusd-trade-ideas

EUR/USD 240 min Chart - EUR/USD has formed a range

Technicals to the Forefront

Last week was all about the FOMC and non-farm payrolls out of the US. The FOMC gave us just enough of a hint, to suggest that we are looking at a rate hike in December. That means the USD might very well continue on its bullish course. Many are now predicting that there is a 90% chance that the Federal Reserve will hike, so that means that for the most part, that is factored into the current price of the USD.

The US employment report was a little mixed. There have been hurricanes in the US which made some of the data a little bit inaccurate. While the report wasn’t quite what was expected, the previous month's data got revised higher after factoring in some of the fallout from the hurricanes. As such it was viewed as largely in line with expectations. That should also be enough to help keep the Fed focused on a hike.

This week things are a little more quiet. We don’t have much top-tier data which is a change. That means that we will be most likely looking at a period of consolidation as traders assess where they think price will go.

Key for the Week - Draghi

Data is quite thin however ECB President Mario Draghi is speaking in what is really the only major event for the Euro. He isn’t likely to be giving too much away, but there is always the potential for a sharp move in reaction to any comment he might make on the Eurozone.

Technical Analysis - The Key Levels

The EUR/USD has fallen into a range between 1.1600 and 1.1650. The question that we need to ask, is whether the momentum can carry us through support in a week with limited fundamental data. I suspect we might get a bounce off support and stay a little more range bound.

2017-11-6-eurusd-key-levels

EUR/USD - Key Levels

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