Ahead of Friday's U.S. Non-farm Payrolls, EUR/USD is currently trading at 1.4309. Long term EUR/USD outlook remains as a strong downward trend, as indicated by ADX staying well above 25 at 31.90, lead by -DMI. However, for the past couple weeks, EUR/USD has been taking a breather from its drop off its November 25th high of 1.5343, staying within a well-defined range of 1.4200 to 1.4480. It has found strong footing at major counterbalanced horizontal support near 1.4200, further backed by the upward sloping 200 day moving average currently at 1.4243. Trading of the EUR/USD is very likely to traverse back to the upper end of the range near 1.4480 or higher in the upcoming days. This may allow Stochastics and CCI to become more overbought so as to tempt more sellers, including those whom already took profits, to jump again on the back of the downward trend for a better price before it resumes further gains. So unless Friday’s U.S. job data is majorly positive, then for the near-term, expect EUR/USD to remain trading somewhere within its range of 1.4200 to 1.4480 or higher, before eventually resuming the longer-term trend of U.S. Dollar strength.
Ahead of Friday's U.S. Non-farm Payrolls, EUR/USD is currently trading at 1.4309. Long term EUR/USD outlook remains as a strong downward trend, as indicated by ADX staying well above 25 at 31.90, lead by -DMI. However, for the past couple weeks, EUR/USD has been taking a breather from its drop off its November 25th high of 1.5343, staying within a well-defined range of 1.4200 to 1.4480. It has found strong footing at major counterbalanced horizontal support near 1.4200, further backed by the upward sloping 200 day moving average currently at 1.4243. Trading of the EUR/USD is very likely to traverse back to the upper end of the range near 1.4480 or higher in the upcoming days. This may allow Stochastics and CCI to become more overbought so as to tempt more sellers, including those whom already took profits, to jump again on the back of the downward trend for a better price before it resumes further gains. So unless Friday’s U.S. job data is majorly positive, then for the near-term, expect EUR/USD to remain trading somewhere within its range of 1.4200 to 1.4480 or higher, before eventually resuming the longer-term trend of U.S. Dollar strength.
Great call!
Great call!