Short Term - Short
1) I will be looking for Short opportunities as the pair is touching a long term area of resistance
2) As per the chart EURUSD has seen a fairly rapid rally to get to this point, so a pull back on the lower time frames should be expected
3) EU Summit over the weekend (17th - 19th) has thus far failed to reach an agreement over EU Stimulus for member states most effected - "we made not enough progress to reach an agreement," Greek Prime Minister Kiriakos Mitsotakis said today NOTE - IF AN AGREEMENT IS REACHED THIS ANALYSIS WILL BE INVALID
4) New US Stimulus package coming into play likely next week with $1200 - $2000 per head (also expected to be more wide ranging with no $40,000 cap as previously expected)
5) Because price is at major resistance it makes for an attractive Risk to Reward Ratio (2.5 - 2.75 TP1 .... 4.00 TP2 )
Take trades once the trend shows itself
Euro is stronger than expected this morning as The Dutch PM hinted progress was being made in the EU Summit (note Dutch PM is leader of 'frugal four' - who oppose wide ranging stimulus for poorer member states)
Hopefully this is indicating that the EUR rally is done, and moves to the downside will begin.
BE PATIENT - Wait for the trend to start
Hoping to scale more into this trade if the downward trend continues
BRUSSELS (Reuters) - European Union leaders appeared to be nearing agreement on a massive stimulus plan for their coronavirus-blighted economies on Monday after the chairman of their fractious four-day summit presented a new proposal to bridge gaps between them.
While stocks have risen, the EUR hasnt experienced such rapid gains - potentially due to the frugal four ensuring more of the stimulus is via cheap loans than grants, which many nations wanted.