Is Upside Pressure Building For The Euro?
Matt Simpson | Aug 18, 2014 06:03AM ET
UP NEXT:
- No red news tonight but we do have several yellow releases, which whilst not expected to provide much volatility, they do help build a picture of overall economic health for their respective economies.
TECHNICAL ANALYSIS:
EUR/USD: Within congestion but upside pressure may be building
If we consider that the EUR/USD has managed to hold above key support in the face of weak data recently then this further suggests an interim bottom is in place.
Next resistance is the sloping resistance, followed by 1.3444. However we may be able to assume a breakout above 1.3373 support to anticipate the breakout. We can see that whilst price has been capped by the sloping resistance that higher lows have been set to suggest buying pressure at the lows.
EUR/JPY: Trading the Bands
The original setup was posted last Monday, and whilst it dragged its heels, the levels and direction worked out accordingly. After seeking the pullback to 136.30 price did drift up and achieve the target at the upper Bollinger Band.
Today's idea is exactly the same but in the opposite direction, as we have seen a Bearish Pinbar at the upper Bollinger Band and we are now seeking to trade to the lower Bollinger Band.
Get The News You Want
To increase reward / risk ratio I would prefer to sell into any rally within the body of the Shooting Star and target 1.3630 support. Also note that on this occasion we are trading in line wit the bearish trend.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.