Short-term Trading Idea FX EUR/USD – Bull Speculation: Renewal As Part Of A Correction

Trading opportunities for currency pair: the euro/dollar jumped from 1.0518 after the ECB meeting and Draghi’s press conference. The euro/dollar and euro/pound on the weekly have formed a double bottom. The euro bulls won’t have the wind knocked out of them that easily. As things stand, there are two outcomes; the main one is the formation of an upward triangle with a 1.1178 target. When the euro closes below 1.0807, this triangle scenario will be off the cards and instead a different scenario with a slide to 1.0518 will be on. Look to sell from 1.1180/1.12.

Background

I’ve had a proper look at all of the currency pairs. From a technical point of view, there’s not much interesting knocking about. After the ECB meeting and Draghi’s press conference, I had to return to the euro and pound.

Current Situation

The price at the time of publishing this review is 1.0875. The euro dollar ricocheted from the 1.0518 minimum by 440 points to 1.0980. The active closing of short positions on the euro was facilitated by the ECB’s decision and the announcement made by Mario Draghi. Market participants expected more aggressive measures with regards to loosening monetary policy.

The strengthening of the euro slowed on Friday after the NFP report was published. The report came out better than expected with US job creation in the non-agricultural sector up in November by 211,000 (forecasted: 200,000) October’s value was reassessed upwards from 271k to 298k, with September also reassessed from 137k to 145k (August: dropped from 142k to 137k). The total reassessment equals an addition of +35,000 jobs.

US unemployment throughout November remained at 5%. The index for average hourly wages was up by 0.2% (forecasted: 0.2%, previous: 0.4%). The percentage of working population also increased by 0.1% to 62.4%.

What’s of interest at the moment?

Thursday closed the 20 previous trading days. The euro/dollar lifted again above 1.0807-1.0835 which was previously a support. Market participant attention is now focused on the FOMC meeting set for 16th December.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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