Intraday Market Analysis: EURUSD Technical Developments

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EURUSD Trading Strategy

Following the European Central Bank (ECB) drastic measures EURUSD was still able to sustain its gains in the Foreign Exchange (Forex) market. As we near holidays (Easter) positions adjustments well-noted across numerous currency pairs.

EURUSD 4hr Chart

Please click on the chart to enlarge:

EURUSD 4hr Chart 24/03/16

EURUSD 4hr Chart 24/03/16

Although it may appear the uptrend is sustainable we suspect a deep lower may be seen before a resumption of the uptrend can be considered. The recent gains appear to be as a result of adjustments ahead of the holidays, which may provide a clean entry for a short trade. Key resistance is provided by the 55 Moving Average (MA, in pink) while the former support (1.1195) concretes the MA resistance.

The 21MA (in green) will gradually trend lower, which is the latter resistance for our EURUSD intraday strategy. The optimal scenario would be a successful re-test of the 55MA or 1.1195, which would then trigger the anticipated bearish pressure in Euro Dollar.

The natural target would be the next support level (in blue), which is holds on the initial re-test may very well catapult EURUSD above 1.1120. Should the support (in blue) give way further weakness may be seen towards 1.1070. The aim of this strategy is to capitalise over short-term weakness in EURUSD before what appears to be a resumption of the uptrend at the time of this writing. The possible trigger could be the US Final Gross Domestic Product (GDP) q/q that is due on Friday.

29/03/16 UPDATE: We have alerted all traders yesterday via email that EURUSD has provided an entry following a successful re-test of the 55MA.

EURUSD 4hr Chart

Please click on the chart to enlarge:

EURUSD 4hr Chart 29/03/16

EURUSD 4hr Chart 29/03/16

Last Updated on April 3, 2016