eToro – Forex Trading Forum

[BlueinGreen]

hi all,

This morning EURUSD is trading at a 7 month low testing the 1.4400 area.
You should notice that there is a major support on the daily chart stretching from 1.4400 to 1.3313. in theses areas I expect some buyers to try and enter longs. However the sentiment over the dollar is still very bullish, so this attempt might not succeed as they hope.

Also, to those of you how have access to a weekly chart (composed of weekly candles) , you can clearly draw a trend line from the beginning of 2006 till now, and see that at this moment EURUSD has just returned to touch the trend line ( signaling a possible buy).

What I am trying to say is that technically it looks like EURUSD should start to trade higher here from 1.4400 or maybe from a lower level at 1.4300.

However the fundamentals do not support this view… oil price has sunk to a new low at $109, the ECB is expected to cut inters rates, and the US has shown some sign of recovery.
You need to decide which side you are on, the fundamental or the technical. Personally I always trade when both fundamentals and technical are pointing at the same direction.


Today’s main events

9:30am GBP Services PMI Forecast 47.0 Previous 47.4

10:00am EUR Retail Sales m/m Forecast 0.0% Previous -0.6%

2:00pm CAD BOC Rate Statement Forecast 3.0% Previous 3.0%

3:00pm USD Factory Orders m/m Forecast 1.0% Previous 1.7%

Happy trading