Pick of the Day: EUR/USD
Good Evening! For the last "Pick" of the week will take a look at EUR/USD for a possible resistance play on the horizon.
On the chart, I used the Fibonnaci retracement tool and we can see the 50% Fib retracement level lines up with minor resistance around 1.4660. This pair has been in ranging mode for a while now, and I feel if it rallies back higher we may see a test of that area before a bounce back lower. Our max profit target is a support area previously tested in the beginning of December.
Before going into the trade idea, let's remember we have US CPI tomorrow. This may give us enough volatility to push the pair up to our sell area. Stronger inflation for consumers is expected, especially after the upside surprise to PPI today. We may see the Greenback further rally later today.
For now, we will jump in short at a better price:
Short EUR/USD at 1.4660, stop at 1.4710, pt1 at 1.4610, pt2 at 1.4530
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned for updates and trade adjustments. Good luck and good trading!
