Fundamental Opportunity
The ECB press conference disappointed when Mario Draghi failed to mention any form of tapering which the market was looking to hear. Instead a reiteration of the continuation of QE to March 2017 and beyond if necessary. This dissapointment caused the Euro to sell off and we expect it to remain under pressure on the lead upto the Feds Rate decision in Decmenber where a rate hike is expected. Also the elections in the US could result in a stronger dollar.
Technical Opportunity
The price is currently hovering just above a significant area of confluence from the beginning of 2016 which would suggest that at this stage we need to see if there will be some profit taking and a meaningful pull back. As you can see from the Chart a pull back to the area of confluence around the 11000 level would be ideal and a little further through that price touches on previous resistance from the press conference and the 50% fib retracement from the most recent down move.
Trade Management
Looking for a tight stop loss just above 11070 will give an excellent risk reward ratio without the price having to move significantly below the previous low and well within the trading range. Locking in some profit on the approach to 10900 would be a wise move.
The ECB press conference disappointed when Mario Draghi failed to mention any form of tapering which the market was looking to hear. Instead a reiteration of the continuation of QE to March 2017 and beyond if necessary. This dissapointment caused the Euro to sell off and we expect it to remain under pressure on the lead upto the Feds Rate decision in Decmenber where a rate hike is expected. Also the elections in the US could result in a stronger dollar.
Technical Opportunity
The price is currently hovering just above a significant area of confluence from the beginning of 2016 which would suggest that at this stage we need to see if there will be some profit taking and a meaningful pull back. As you can see from the Chart a pull back to the area of confluence around the 11000 level would be ideal and a little further through that price touches on previous resistance from the press conference and the 50% fib retracement from the most recent down move.
Trade Management
Looking for a tight stop loss just above 11070 will give an excellent risk reward ratio without the price having to move significantly below the previous low and well within the trading range. Locking in some profit on the approach to 10900 would be a wise move.