EUR/USD Oversold But Room To Fall
PipHut | Jul 10, 2013 06:46AM ET
It’s been a solid start to the month, but we want more and the markets appear poised to deliver on several different pairs today. Take note that the FOMC meeting minutes will be released today around 18:00 UTC! Read more about this announcement below in today’s setup!
Yesterday’s EUR/USD Signal Result: We passed on the EU short yesterday in lieu of the better, more imminent GU short – it turns out we should have taken both as EU dropped like a rock after breaking our aggressive rising support.
Today’s Signal: EU is beginning to run into some heavy support on the daily and weekly charts – the 2013 low currently stands at 1.2744 and the next major support after that is the November 2012 low of 1.2661. With more than 100 pips to run under our current rising support we will once again look to get short on a support break with a TP of 80 and a SL of 50.
FOMC meeting minutes come out today around 18:00 and we will re-evaluate this trade setup before then and send out a PRO alert if we make any changes to accommodate the news event’s volatility. The meeting minutes will be watched closely by traders for any clue as to when the US Fed will end, or significantly taper, its quantitative easing. Any hawkish language above and beyond what has already been priced in during the past month of drops could lead to more losses for EU. Any language that downplays the “end” of quantitative easing could be met with a rise in the EU as risk-based assets rise. We shall see.
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