After having received hawkish tones from Janet Yellen’s testimonial yesterday, I will be looking for long opportunities on the dollar. Furthermore, We experienced weaker than expected Eurozone GDP data yesterday, furthering my reasons for shorting this pair. We saw the key support of 1.0600 broken yesterday, with next target around 1.05500.

EUR/USD Daily chart

Price has come off MM3, where it opened the month, thus the monthly bear target is MM1. Price has bounced off current support, I will wait for a pull back to resistance (1.0600) area before entry. We have seen the daily 21 and 55 ma's cross to the downside, giving further bearish confirmation. The daily stochs are oversold, but remain below the 20 line, and until it has crossed above, further selling may resume.

EUR/USD H4 chart

Price has begun the week below WPP, and thus bearish targets may be further below WS1, which is where price has found current support. It is evident that we are trending downwards on this time frame, shown by steep angle and seperation between developing between the 21 and 55 ma, and shown by black trend line. I will look for an entry either at the role reversal resistance area around the 1.0600 mark, or for a slightly higher entry around the 61.8 fib level, both areas shown in red,support in green.

EUR/USD H1 chart

Price is opening below dpp, and thus targets may stretch further below dm1. As shown in green, we are at current support, and thus I will wait for a pull back to either the 1.0600 area, which is also the 50% fib retracement level, or I will look to enter between dm3 and dr1, which coincide the 61.8% fib level and role reversal resistance.

One thought on “Eur/Usd Daily short 15th feb, 2017”

  1. Ryan Gandalf van Jaarsveld says:

    Dear Dom

    As discussed this morning, I am also a bear on EURUSD and I agree with your levels of resistance and also looking to short at those levels. To look at this objectively I would prefer overbought levels on H4 though we are moving down on daily and H1 is moving up towards overbought and currently at the 21. Stochastics is only useful in a trend and the market is currently bearish on H4 and H1 so a bear can’t ignore that. My alpha being a bull on USD as long as the FOMC are raising rates and after Yellen clearly stated that all upcoming meetings are live yesterday I am expecting USD strength – if not in the London session then during New York. With positive PPI yesterday I think today’s CPI is quite important. I am with you on this trade though would also look for an opportunity to short at WPP/ 10650 even if that resulted in price coming off the 55 and making a double bottom.

    Ryan Gandalf
    Analyst Forex.Today
    e-mail: [email protected]
    Skype: Ryan.Gandalf

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