Short term
/
Buy
Trade view / 06 December 2017 at 0:36 GMT

EURUSD prepares for its next trend move

Managing Director / Technical Research Limited
New Zealand
Instrument: EURUSD
Price target: 1.2330
Market price: 1.1827
Background

The dollar is holding its ground, despite a further flattening of the US yield curve. Bond traders seem to be concerned the Federal Reserve is going to push ahead with rate hikes next year despite the US economy having experienced one its longest expansions in 50 years – which would suggest it is on borrowed time. 
 
But FX traders need to take a shorter term approach and for today that centres around the ADP employment number out of the US. This is usually a good guide to the new jobs number out on Friday. Heading into today’s data, analysts are expecting the Friday jobs-added number to come in around 190,000 with the unemployment rate steady at 4.1%. Average hourly earnings should bounce back from last month’s hurricane-related 2.4% year-on-year to 2.7%. 
 
There would need to be a significant miss on these expectations to hold the FOMC back from raising its fed funds target rate range by 25 basis points to 1.25%-1.50% next Wednesday.
 
This is a relatively quiet week for data out of the eurozone.


Management and risk description

The euro has maintained its “impulsive” (bullish) Elliott Wave structure from its November 7 low of 1.1555 (refer daily chart below) to enable uptrend to extend towards the 1.2330 level over the coming weeks.

Yesterday saw the euro test key mathematical retracement support around the 1.1800 level, and with classical charting flag support about 1.1780 (refer daily chart) expecting 1.1800/1.1780 to now hold and rally above 1.1900/1.1920 resistance to herald the resumption of uptrend towards 1.2090 (this year’s September peak) en route to the late 1.2100s and 1.2330.


Parameters

Entry: Today EURUSD is seen as a buy in the low 1.1800s.

Stop: Just under 1.1775, initially.

Target: 50% at 1.2083 and 50% at 1.2177.

Time horizon: Allow 1-2 weeks for first target to be met.  

EURUSD daily chart (click to expand)
EURUSD  Daily Chart
 
Source: ThomsonReuters  

EURUSD weekly chart (click to expand)
 
Source: ThomsonReuters.  Create your own charts with SaxoTrader; click here to learn more


— Edited by Susan McDonald


For more on forex, click here

Non-independent investment research disclaimer applies. Read more



A compiled overview of Trade Views provided on TradingFloor.com is found here
06 December
Treve Treve
another superb risk/reward trade idea Max
06 December
seas seas
Yes.
06 December
Patto Patto
Bullish call ! This would mean the USD is heading down big time (with implications for all financial markets). Let's see ..........
06 December
Morris Morris
What is the corrective format on EW 4 on the daily chart?
06 December
Ekwueme Mike Anyadibe Ekwueme Mike Anyadibe
wave 2/ and wave 4/ time duration are similiar thus wave 4/ is not yet complete...
06 December
Max McKegg Max McKegg
Interpreting Wave II as a Zigzag structure and Wave II as an Irregular structure, Alsoe Wave 2/ interpreting as an Irregular and Wave 4/ as a Double Three
06 December
Murat's Martini Murat's Martini
This trade is another loser
6d
David12 David12
@Murat's Martini; this one is a call = an idea; if you have any winning call / idea, please share it up ...
6d
Alan M Alan M
Hanging in there 2 pips from the stop on my chart! After 2 attempts to go lower I would love to see a break up above 1.18
6d
Murat's Martini Murat's Martini
Yes i have a winning idea pls visit https://www.mql5.com/en/signals/362777
6d
Murat's Martini Murat's Martini
This signal is fully automated for further questions you may contact me at muratkoprululer@gmail.com
6d
alki alki
Bounced off support. Back from the dead.

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