- EURUSD reversal looks to US GDP– Immediate concentration reduce sub-1.0730
- Updated targets cancellation levels
- Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)
Technical Outlook: Euro topsy-turvy off together insurgency fluctuating off a Dec high this week- Note that a slope of this trendline originates from a broader forward median-line arrangement fluctuating off a 2016 highs. A reason in daily RSI sub-60 also highlights a hazard to a allege off a monthly lows.
Notes: A closer demeanour during cost movement shows Euro trade within a proportions of a near-term descending pitchfork arrangement fluctuating off a Dec lows. Note that a mangle next a median-line / weekly open shifts a near-term concentration reduce with a decrease already holding out initial targets during 1.0672. Subsequent support objectives during a 50-line (currently ~1.0650), a 38.2% retracement during 1.0609 a reduce together during 1.0580– area of seductiveness for probable depletion / long-entries.
Consensus estimates are job for a 2.2% q/q shave for US 4Q GDP, down from a prior review of 3.5%. Even yet tomorrow’s recover is approaching to prominence a slack in both expansion inflation, a information is doubtful to pierce a needle as it pertains to financial process with Fed Fund Futures still pricing in a 74% substantially for an seductiveness rate travel in June. That said, from a trade standpoint, streamer into a recover we would be looking to blur strength while next a monthly / yearly high-day tighten during 1.0730 with a pierce reduce targeting downside objectives into constructional support.
- A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are brief EUR/USD – a ratio stands during -1.22 (45% of traders are long)- diseased bullish reading
- Long positions are 21.2% aloft than yesterday and 10.8% above levels seen final week
- Short positions are 14.4% reduce than yesterday though 12.9% above levels seen final week
- Open seductiveness is 1.3% reduce than yesterday though stays 12.6% above a monthly normal
- The stream energetic of building prolonged seductiveness highlights a risk of serve near-term debility in cost as a ratio continues to slight from new extremes of -1.77. Look for a flip to net prolonged in a entrance days to advise that a some-more poignant annulment is underway.
Relevant Data Releases
Looking for trade ideas? Review DailyFX’s 2017 1Q Projections
Other Setups in Play:
- NZD/USD Rally Vulnerable Ahead of 7300- New Zealand CPI on Tap
- AUD/USD Risks Exhaustion on Record Low Core Inflation
- AUD/JPY Reversal Targeting Initial Support Hurdle
- Webinar: Markets on Edge as Trump Assumes Office- USD Under Review
—Written by Michael Boutros, Currency Strategist with DailyFX
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