[EXPIRED WITHOUT ENTRY] EUR/USD Trade Plan
Created August 25th, 2023
DERBYSHIRE GB / 2023, August 25th, 2023 - Trade plan to buy EUR/USD dips.
Short Term, Previous Three Months View
The EUR/USD is currently trading in the $1.07 area and has strong bearish momentum due to being lower than the 100 day moving average and recently fell below the 200 day moving average.
July 18th Start of Downtrend: USD strengthened as sentiment reevaluates the path of the Fed's monetary policy.
July 26th Retracement: USD weakened as the Fed may be at the end of its hiking cycle.
July 27th Downtrend Resumes: USD strengthened as sentiment shifts towards a potential further hike from the Fed.
August 3rd Retracement: USD weakened ahead of and into the jobs report which showed fewer new jobs than expected indicating a cooling economy.
August 10th Downtrend Resumes: USD strengthened as US CPI moves higher and sentiment reconsiders the path of the Fed’s monetary policy.
EUR/USD Trade Plan
The base case for events in the upcoming week are favoured towards a weaker dollar, applying upward support to the EUR/USD due to an expected peak hiking cycle by the Fed and weak non farm payrolls. Potential risk for a stronger dollar is possible if sentiment interprets the Jackson Hole speech as overtly hawkish.
The EUR/USD trade plan is to buy if the value dips to $1.0649 with stop loss at $1.0449 and profits to be considered at $1.0995.
Gavin Pearson
Retail trader since 2008
Specialises in forex G7 currencies
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