EUR to USD: Daily Forecast Calls for a Sell
- Written by: Gary Howes
-
FuturesTechs issue the following forecast on the euro dollar exchange rate (EUR to USD) on Thursday morning.
Short Term Trend: Neutral-Bullish
Medium Trend: Bullish
Candlestick Chart says: A large red candle with Marabuzo resistance at 1.3716 but we held short term Fibonacci support at 1.3661.
Profile Charts say: 1.3706 is a CHVN and is now above us after breaking yesterday.
Summary: so much for buying dips to 1.3700. glad we didn’t make it an “official” trade idea. I did have a go myself but with a very tight stop.
Trade Idea: You could look to sell a tag of 1.3700 with a stop above 1.3733, targeting 1.3661 then 1.3590, but I’d still prefer to see some really neat and tidy price action before getting too involved, and it’s month end…
Latest rates
EURUSD dived to 1.3662 yesterday on news that Putin ordered test of armed forces’ readiness in Western and Central Russia. Russian news obviously boosted fears on Ukrainian situation.
EURUSD saw support at 1.3655/65 (50-dma / fibo 38.2% on Nov-Dec rally).
"Bull momentum lost pace, a close below 1.3650 should further weigh on EURUSD before March 6th ECB meeting. EURGBP remains bid above 0.82000 keeping the bias slightly on the upside," say Swissuote Research.
Yet the marginal positive trend should falter for a close below 21-dma (currently at 0.82483).
