EUR/USD: Time to Buy?

EUR/USD Hourly Chart

As you can see, EUR/USD‘s 4-hour time frame shows that it was unable to make a new “lower low.” In fact, price broke through the falling trend line and actually made a new swing high.

I want to jump in and ride the move up so I zoomed in the 1-hour chart to find a better entry. I haven’t quite pinpointed where I will buy, but using the Fibonacci retracement tool, I’ve spotted a decent entry area around the 1.2715-1.2750 price range. It’s the area between the 38.2% and 61.8% Fib levels. The Stochastic also shows that conditions are oversold, which could mean that sellers are running out of steam. Once I see candlestick patterns that confirm my long bias, only then will I pull the trigger.

EUR/USD 4-hour Chart

On the fundamental side of things, the recent roster of economic data from the euro zone came in better than expected. As Pip Diddy reported, the GDP reports of France, Germany, and that of the entire region topped forecasts yesterday and gave the shared currency its much-needed boost.

I think that the positive vibes coming from these positive figures will still carry on in the coming trading days. After all, it would seem that markets widely priced in negative growth figures from Europe before the GDP reports were released.

So there ya have it! That’s my trade idea. What’s yours? Share them to me and the rest of the community!

XOXO,

Huck

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4 comments

  1. StephanHawkingsTreadmill

    I like your trade idea and will keep an eye out for it. Some worries are that the USDX still looks bullish of the daily chart. Also the EURJPY is on a down trend on the daily charts. Right now EURJPY is at a resistance point in the down trend so it could go either way. I think EURJPY with drive EURUSD one way or another…but that is just my novice opinion. Food for thought at least.

    Reply

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