Let's Gain Even More On The Sliding Euro And Pound

Yesterday, we've heard the ECB President speak and tomorrow, it's the Fed's turn. What about the time in between? Well, the markets still move and it's our job to be positioned accordingly so as to profit from whatever is unfolding. And what kind of opportunities we've managed to catch! Good news, the ride is far from over. Let's take a look at the way things are shaping up. We'll then sharpen our battle plans accordingly. We even have a new candidate for opening a long position to tell you about!

EUR/USD - Heading Lower

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Yesterday's EUR/USD session saw a meek attempt of the bulls to move higher that ended up pretty much going nowhere. Earlier today, we saw a similar push higher but the bulls gave up all their gains and some. As the pair currently trades at around 1.1195, our short position has become even more profitable.

The present downswing has caused a breakdown below the early-June lows and the 61.8% Fibonacci retracement, opening the path to even lower values down the road. The sell signals of the daily indicators remain on the cards, further supporting the bearish case.

Should the pair move even lower later today, we're likely to see at least a test of the upper border of the previously-broken declining blue trend channel in the very near future.

Clearly, yesterday's comments by Mario Draghi that more stimulus may come, have played a role. So far among the most important central banks, it has been only the Fed that has done some real tightening and balance sheet shrinking to speak of. In the run-up to tomorrow's FOMC, we'll have U.S. real estate data later today to move the markets - building permits and housing starts.

USD/CAD - Taking a Bullish Turn

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USD/CAD has jumped higher on Friday, breaking back inside the short-term rising blue trend channel. This bullish development has been met with some follow-through buying since. Yesterday's attempts to move the rate lower have been rebuffed and earlier today, the bulls keep pushing higher. The pair is solidly above the 50% Fibonacci retracement as we speak.

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