The Euro continues to drop against most other major currencies, and it looks like the EURJPY pair is also heading lower in the short term. There is an important support level forming around the 136.80 level. A break below this might present us a nice sell opportunity. So, we should look for sell opportunities moving ahead.
There is a bullish trend line on the hourly chart for the EURJPY pair, which is also coinciding with the 136.80 support level. So, if the pair break the mentioned support area, and closes below the same, then we can enter into a sell trade. Remember, wait for the pair to settle below the 136.80 level before jumping into a trade, as we do not want to trade any false break.
Initial target should be around the 136.10 level, and final target could be around the 135.50 level. Stop should be above the 137.00 level.
Reviewing yesterday’s events and trades
Yesterday, the US Case-Shiller index prices and consumer confidence data was published. The highlight of the day was the US consumer confidence, which registered a sharp rise to 90.9, beating the expectation by a fair margin. This helped the US dollar to gain ground against most other major currencies, including the Euro and the British pound. The EURUSD pair traded a touch below the 1.3400 support level earlier today, and GBPUSD created a new low for the week.
Fundamental Outlook for the day
Today is an important day for the US dollar, as a lot of risk events are lined up later during the NY session. The first release will be the US ADP nonfarm employment change, then the US GDP data will be published, which is expected to register a growth rate of 3.0%. And most important, the FOMC interest rate decision is lined up, which might cause a lot of movements in the US dollar. It would be interesting to see whether the Fed continues with their taper plan or not.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPCHF, GBPJPY, EURJPY, AUDUSD, EURAUD, AUDCAD, USDCAD and EURCAD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
