EUR/USD Daily Analysis: The USD rallied hard against euro this morning, spurred on by a weaker than expected Euro-zone inflation report, signalling to the markets that ECM stimulus may just be ramping up while the Fed looks to hike interest rates in early 2015. This is perfectly in line with our technical, bearish forecast (funny how that works) and we continue to look for reasons to sell. The pair is heavily oversold so it is hard to chase further losses from here, but we will sell into any corrections.
Our Preferred Trades*: We have moved our sell limit down to 1.2750, SL @ 1.2785 (top of yesterday’s consolidation), TP @ 1.2650.
Yesterday’s EUR/USD SwingPRO Signal Result: No trades triggered yesterday.
Today’s SwingPRO Signal: Short on support breaks. See preferred trade above.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.