Rise and shine, guys! Check out my pre-week analysis and find out what my take on the forex market is for the next few days.
We sure got a fair share of news from the euro zone last week. For one, the euro got sold off on reports that highlighted weakness in the German economy.
There were also remarks from EU policymakers that the euro could be overvalued which consequently sparked speculations that the ECB might soon intervene to weaken the currency. Yikes!
On the brighter side of things, Spain’s bond auction came through and allowed the euro to get some lovin’!
Just like last week, there won’t be any top-tier, market-moving reports to be released from the U.S. And so, I’m expecting price action on EUR/USD to be largely affected by economic reports from the euro zone. I’ll keep close tabs on the PMI reports due to be released on Thursday!
EUR/USD is now trading below the 100 SMA on the hourly chart. This, along with the double top that Big Pippin pointed out on his Daily Chart Art, has made me feel bearish on the pair. But I’m not planning to short it anytime soon! I’ll wait for it to test the 200 SMA for support first. If I see a strong break probably around 1.3270, I’ll probably pull the trigger.
My stance on USD/JPY remains the same. As soon as the bulls get some momentum, the pair’s going to head higher and post new highs. I’m currently keeping a close eye on the confluence of the 100 SMA and the 50% Fibonacci retracement level. If price stalls here, I’m thinking of jumping in long.
There ya go folks! What are your thoughts and trade ideas for this week? Share them with me!