Trade view /
15 March 2018 at 23:30 GMT
The main data point out of the Eurozone today will the final reading on February inflation. There is not expected to be any change to the flash estimate of 1.2%. In the US there will be updates on industrial production and jobs openings, either of which could have a minor impact on USD.
Attention will then turn to next Wednesday's FOMC monetary policy statement and updated economic forecasts, specifically the projected flight path for the fed funds rate in 2018. Markets are yet to fully price in the three hikes projected last December. The probability of the first move coming next week is about 85%.
Management and risk description
The euro’s price swings this week are indicative of complex corrective consolidation. On the hourly chart (refer below) there is a potential channel forming, with channel support (about 1.2225) very close to 3-Wave swing price equality, providing a limited risk entry level (small loss potential but large profit potential; something I always strive for).
A strong reversal about channel support would give upside potential toward 1.2325, 1.2410 and 1.2555.
Entry: today only: EURUSD may present a buying opportunity at 1.2240/1.2225.
Stop: just under 1.2200, initially.
Target: open at this stage.
Time horizon: allow a few weeks.
EURUSD hourly chart (click to expand)
EURUSD weekly chart (click to expand)
– Edited by Gayle Bryant
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