Categories: Technical Analysis

Short-term buy opportunity in EURUSD

The Euro moved lower against the US dollar earlier today after the Euro zone services PMI missed the expectation. However, the EURUSD pair is testing a critical support level around the 1.3390 level, and if it holds it, then a short-term bounce is very likely. So, we can try a small risk trade moving ahead.

There is a bullish trend line on the hourly chart for the EURUSD pair, and the pair is currently testing the same. There is a monster support around the 1.3375 level. So, we can enter into a buy trade with around 20 pips stop aiming around 60 pips from the 1.3390-95 level. Remember, risk for this trade should be small.

Initial target should be around the 1.3440 level, and final target could be around the 1.3460 level. Stop should be below the last low of 1.3370.

Reviewing yesterday’s events and trades
Yesterday, there was no major risk event lined up during the NY session. However, the UK construction PMI and the Euro zone PPI data were published during the London session, which came in line with the expectations. This helped the EURUSD and GBPUSD pairs to gain bids in the short term. Moreover, the RBA interest rate decision was lined up earlier during the Asian session. The outcome was as expected, and as a result the AUDUSD pair was seen trading a touch higher.

Fundamental Outlook for the day
Today, the US services PMI, factory orders data and the US Institute for Supply Management (ISM) non-manufacturing PMI will be released during the NY session. The market is expecting the US ISM non-manufacturing PMI to rise from 56.0 to 56.3. If the outcome stays in line with the expectation, then the US dollar can again start a new leg higher against the Euro and the British pound. On the other hand, if it misses the forecast, then the US dollar might continue trading lower.

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

Trade safe friends. Happy trading!

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.