Fundamental picture:
Following mister Draghi's dovish comments on Friday EUR/USD started a new leg of sell off and resumed its bearish trend. Don't be fooled by the corrective move we have seen this morning following the strong german data beat (IFO and ZEW) consider this as market noise, Draghi is determined to fight for inflation and the return of economic growth in the euro zone. Following speech of Jens Weidman, Bundesbank governor came as an approval of Draghi's view and (probable intervention), it is important to notice that usually is view is dissident than the one of Draghi.
Technical picture:
The technical picture is here to help us determine the entry point. In this case there is a nice confluence of the 50 periods simple moving average with the 50% and 61.8% Fibonacci retracement from friday's down move that will create a strong resistance zone expect shorter to come back in the trade between 1.2460 and 1.2485.
I triggered, the next leg down should target at least 1.2100 if not lower at 1.2040 where the price will find a long term support.
Trade setup:
Entry short@1.2470
SL@1.2565
TP@1.2100
Following mister Draghi's dovish comments on Friday EUR/USD started a new leg of sell off and resumed its bearish trend. Don't be fooled by the corrective move we have seen this morning following the strong german data beat (IFO and ZEW) consider this as market noise, Draghi is determined to fight for inflation and the return of economic growth in the euro zone. Following speech of Jens Weidman, Bundesbank governor came as an approval of Draghi's view and (probable intervention), it is important to notice that usually is view is dissident than the one of Draghi.
Technical picture:
The technical picture is here to help us determine the entry point. In this case there is a nice confluence of the 50 periods simple moving average with the 50% and 61.8% Fibonacci retracement from friday's down move that will create a strong resistance zone expect shorter to come back in the trade between 1.2460 and 1.2485.
I triggered, the next leg down should target at least 1.2100 if not lower at 1.2040 where the price will find a long term support.
Trade setup:
Entry short@1.2470
SL@1.2565
TP@1.2100