Trade Ideas - Looking for the EUR/USD to hit 1.1800
Entry Point: 1.1700
Take Profit: 1.1800
Stop Loss: 1.1660
The Euro well and truly broke out above our profit target last week and has established itself above the 1.1600 level. As we near the next key target of 1.1700, there’s a strong chance that we will test those levels and move higher. Look for price to maintain 1.1700 before getting long.
Our initial profit target is 1.1800.
Should price break below the 1.1660 level after testing the highs at the 1.1683 level, we have to assume there still isn’t significant buying interest to bid the market up any further.
EUR/USD Daily Chart - EUR/USD is looking to hit 1.1800
Last Week - No change from the ECB
Mario Draghi and the ECB headlined last week's economic news, as traders waiting with anticipation as to what the next move on interest rates might be. When the ECB decided to leave rates on hold all attention moved to what Mario Draghi has to say surrounding the current economic climate and what to expect regarding QE purchasing moving into the later half of 2017 and beyond.
A dovish Draghi signalled little intention to change the current course of action and made a note that their analysis was not looking beyond December 2017.
On the flip side the USD was weak, pushing many key currency pairs higher.
We’ve recently heard Federal Reserve Chairman Janet Yellen, appear to be mixed on the current state of interest rates and underlying inflation. US GDP showed no improvement in the most recent set of data which put a dampener on the potential for any kind of interest rate rise in the near future. This week eyes will again turn to Yellen and the FOMC to see if there are any changes in underlying interest rates or at the very least a change in language.
Key for the Week - FOMC Meeting
All eyes are on Federal Reserve Chairman this week as the FOMC meets to discuss the possibility of any interest rate rises. With some mixed economic data in recent weeks, chances of a rate hike appear slim, putting further pressure on an already weak USD.
Technical Analysis - The key levels
The EUR/USD is powering through new highs and the important levels to watch are now the significant numbers. 1.1700 is the one to watch in early trade. If the Euro can take it out early in the week and if the FOMC leads to further USD weakness then we will be targeting the next key resistance at 1.1800.
EUR/USD - Daily Chart - Key short term support and resistance
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