Daily Analysis: Looking for a sell opportunity in the EURUSD

Hello friends,

First of all, I would like to wish everyone a wonderful and a good trading year. Let’s start the year with an interesting opportunity for EURUSD. The pair has breached an important up-move trend line, as plotted on the 4 hour chart shown below. I think this trend line may now act as a resistance. So, any rallies may provide us a sell opportunity.

I think the pair can move a bit higher from the current levels, and form a duplication of the current wave, as highlighted in the 4 hour chart below. After this move, the pair might continue to move lower. So, once the pair moves higher, makes a stop at around the 1.3700 level and forms a bearish divergence, then we will enter into a sell trade.

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Initial target should be the last low at around the 1.3560 level as shown below, and final target could be around the 1.3450/30 levels. Stop should be triggered on a close above the broken trend line.

Reviewing last week’s events
There were some economic events released for the US in the last week, including the pending home sales data, CB consumer confidence data and ISM manufacturing PMI. The data was satisfactory, as the consumer confidence jumped from 72.0 to 78.1 and ISM manufacturing PMI came as expected. The US dollar was seen gaining some ground against the Euro and the pound. The EURUSD traded below the 1.3650 level, and the GBPUSD pair traded below the 1.6500 level.

Fundamental Outlook for the day
Today we have the US trade balance data scheduled during the NY session along with Canadian trade balance data. The Canadian Ivey PMI will also be released later during the day, which is expected to rise from 53.7 to 55.0. Other than this, the Investor’s Business Daily (IBD), TechnoMetrica Institute of Policy and Politics (TIPP) Economic Optimism Index is also lined up in the US session. Let’s wait and see whether the US dollar can gain some more ground or not.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, USDCAD, EURJPY and AUDUSD.
Get it HERE: Vladimir’s Markets Forecast

Best wishes friends. Happy trading!

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.