Short term
/
Buy
Trade view / 15 March 2018 at 23:30 GMT

EURUSD offers potential to test channel support

Managing Director / Technical Research Limited
New Zealand
Instrument: EURUSD
Price target: 1.2555
Market price: 1.2305
Background

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.

Parameters

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 Hourly chart

Source: ThomsonReuters  

EURUSD weekly chart (click to expand)
EURUSD weekly chart

Source: ThomsonReuters  

–  Edited by Gayle Bryant

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16 March
Treve Treve
Max another great Risk/Reward, love it !
16 March
Max McKegg Max McKegg
Thanks, Trading is a numbers game in the end all said and done; 32 years of trading and still standing!
19 March
THINK THINK
Hello Max, is this idea still valid?
19 March
Max McKegg Max McKegg
level not reached Friday ... prefer to see today's price action now
19 March
THINK THINK
Thanks for the reply.

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