EUR/USD Long opportunity

Intermediate

Support Convergence at 1.1730

The 200 day MA, the 13 day MA, the high from 15th July and the 38.2% retracement from the move down 15th May are converging around 1.1730.

The Euro is likely to continue its good run after the post-German election jitters, after a string of positive data in September and hawkish announcements  from the ECB for cutbacks to QE.

Across the pond, Trump seems quite happy to let the USD slide and boost exports.

Indecision from Yellen and the Fed, may mean we have to wait until late Q4 for the long awaited rate rise. This added to the lack of quality jobs in the US , could keep the USD from making any substantial gains in late September and into October.

On the flip side, if the USD does make some substantial gains, and EURUSD breaks through 1.1700 to close  below the 200 day MA on the weekly chart, the next major support is around the 1.1450 level (the top of the 2015-2016  range).

 

For now, I prefer to buy the dip.

Daily EURUSD  Chart

EURUSD Chart

Semi-Pro Trader

David has successfully traded the FX markets since 2010 from a semi-professional standpoint, principally using technical analysis. His strategy uses price action, support and resistance levels, Fib... Continued

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