EURUSD
Looking overbought and taking a short trade... make quick 20-25 pips profit.
- The
EURUSD
extended its advance up to 1.0718 yesterday - Mainly weighed by comments from Donald Trump, as he warned that the USD is “too strong” for US companies to compete with their Chinese counterparts.
- On data side - Germany released the January ZEW survey, which continued to improve, although by less than expected, with the index up to 16.6 from previous 13.8. However In the US, the New York Manufacturing index for January came in at 6.5, down from previous 9.0 and the expected 8.5.
- UK PM Theresa May and the Sterling confirmed the UK is ready to go for a hard Brexit, but with a quite conciliatory tone and even agreed to submit to the local parliament the final Brexit deal.
- Now trading around 1.0700, the recent advance provides further evidence that
EURUSD
has found an interim bottom, and that the upward movement may extend during the upcoming days, towards the critical 1.0800/40 region, which was a strong base during 2015 and 2016. - Technical indicators have resumed their advances within positive territory after a modest downward correction in the 4 hour chart, with intraday buying interest now aligned around 1.0650.
- An extension beyond 1.0720 is now required to confirm a new leg higher.
- All said, a short positing is a go with the oversold position.
As usual I'm in for 20-25 pip profit. Ride with me!
