Here is a quick trade plan for EUR/USD longs.
I’ve been fundamentally bearish on the USD for a long time and I don’t expect a change in my bias anytime soon.
To aggravate the situation there’s an important development, which I consider to be KEY for my USD “bearishness”: History tells me that protectionism measures by US gvts aren’t keen to produce positive consequences for the USD and we have the example of the Reagan Administration and Bush’s Steel Tariff on 2002 to back that up. With this in mind, I’m also not expecting any real positive outlook for the USD, with Trump’s tariff on steel and aluminium.
Important: We have NFP on Friday, so caution is strongly advised by the end of the week.
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Let’s look at the technicals: