Hello Traders,
It’s all about the Feds today and if they go on and raise interest rates, then market participants would have something to smile about. However, if they don’t then it would be a blood bath. All in all, this “planned” rate hike has been priced in. Anyhow, should they raise rates and the tax bill pass in congress then we expect next year to be a solid year for the green back. This year it has been on the receiving end mainly because of the suppressed inflation and fluctuating labor markets. The expected corporate tax rate slash should spur growth, firm up inflation and lead to more employment and that is exactly what Trump wants. He’s expected to speak later today.
In our chart, it’s time to sell the Euro. The weekly chart is especially trend defining with series of lower lows. Most importantly we can see that close below the 20 period MA over the course of last week and this should likely be confirmed this week. In the 1HR chart, any surge and close below $1.1725 would mean bears are in charge just as it is in the weekly chart. The minor resistance trend line connecting December 11-13 should act as our resistance zone going forward.
This is how we shall execute this trade:
Sell Stop: 1.1725
Stop Loss: 1.1770
Take Profit: 1.1550-November 2017 lows
Have a good trading day
eurusd 1hr chart December 13,2017
eurusd Weekly chart December 13,2017
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