A rallying USD is putting ample pressure on Euro futures. Now that we’ve broken trendline support, it appears that we’re in the midst of a steeper correction. How low can the contract go?
Technical Outlook:
Euro futures trended higher for the duration of Q4 last year, with trendline support dating back to November first. Weakness in the USD, and favorable economic data through that period helped propel the contract higher. However, now that the USD has turned higher, we saw Euro futures breach that support line. Looking at RSI, we are still firmly entrenched in no-man's land, with RSI reading approximately 41. In other words, it would appear that we have ample selling pressure yet to materialize. If we see a continuation in strength in the USD, the concurrent weakness in the Euro could see the lows from early November tested over the course of the next 6-8 weeks.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Technical Outlook:
Euro futures trended higher for the duration of Q4 last year, with trendline support dating back to November first. Weakness in the USD, and favorable economic data through that period helped propel the contract higher. However, now that the USD has turned higher, we saw Euro futures breach that support line. Looking at RSI, we are still firmly entrenched in no-man's land, with RSI reading approximately 41. In other words, it would appear that we have ample selling pressure yet to materialize. If we see a continuation in strength in the USD, the concurrent weakness in the Euro could see the lows from early November tested over the course of the next 6-8 weeks.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.