Very simple roadmap for EURUSD
The position will only be executed if we break down the supporting zone around 1.09900 as shown. The stop loss would be behind a relevant swing off of the zone anticipating a dead cat bounce before a strong trend resumption. The top small 4h trend line at current price caps the topside for now and the gameplay will change if this get broken with a potential long to be executed - as shown by the black arrow.
This play could either be negated or be catalysed by:
1) Data from the US today, if we get a strong directional focus (i.e. all data turns very good or very bad) then we could see this shift the gameplay slightly if we look at false breaks from the trend line on poor US news. Keep an eye out for this.
2) UK general election data, if the Conservatives win a majority, expect EUR and sterling to rally with reduced political uncertainty and a conclusion to brevet in sight - with Johnson's deal likely to pass. If we get a labour win or hung parliament then expect EUR/GBP weakness leaning to the potential setup of the trade below the 1.09900 zone.
VERY VERY heavy news week to follow - Be mindful of this in any positions you are looking at.
The position will only be executed if we break down the supporting zone around 1.09900 as shown. The stop loss would be behind a relevant swing off of the zone anticipating a dead cat bounce before a strong trend resumption. The top small 4h trend line at current price caps the topside for now and the gameplay will change if this get broken with a potential long to be executed - as shown by the black arrow.
This play could either be negated or be catalysed by:
1) Data from the US today, if we get a strong directional focus (i.e. all data turns very good or very bad) then we could see this shift the gameplay slightly if we look at false breaks from the trend line on poor US news. Keep an eye out for this.
2) UK general election data, if the Conservatives win a majority, expect EUR and sterling to rally with reduced political uncertainty and a conclusion to brevet in sight - with Johnson's deal likely to pass. If we get a labour win or hung parliament then expect EUR/GBP weakness leaning to the potential setup of the trade below the 1.09900 zone.
VERY VERY heavy news week to follow - Be mindful of this in any positions you are looking at.