The EUR/USD will likely bounce off key support that has been strong for a number of weeks I’m looking to enter at key support at 1.2250, with a stop loss at 1.2150 and a profit target ot 1.2400.
EUR/USD 240 min Chart - Deja-vu for the EUR/USD
More Geopolitical Concerns
Last week the attention was clearly on the US-China trade wars. As the week progressed we heard from the Chinese leader during a pre scheduled speech and he did all he could to water down the concerns from investors worldwide.
While that was getting pushed to the side, reports came out that the US was looking to respond to a chemical weapons attack that took place in Syria. The reports became more concrete when US President Donald Trump began tweeting about them.
Over the weekend the US took action along with France and the UK and by way of an air strike on some key targets. The entire event didn’t have a huge impact on the forex markets, however we will find out what the sentiment is like when US equity markets open on Monday.
Key Economic Data
This week is lighter on the key economic data but we have a couple of key metrics that we need to watch for that will move the EUR/USD. The first is US Retail Sales. The numbers have been looking better across the board in the US and I full expect to see a strong result.
We also have Eurozone CPI. Inflation has been lagging but is predicted to come in at 1.4% annualized. This is a strong result given that it was flat not all that long ago. The ECB has long been concerned about the state of inflation and a strong result will see upward pressure on the EUR/USD.
The range that we’ve been focused on between support at 1.2250 and resistance at 1.2450 is remaining intact.
We have had no clear trend for the best part of 2018 and that has been making trading this pair a trickier proposition. With that in mind, it’s best to play the major ranges for the time being until a new trend forms.
EUR/USD - Key Levels
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