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One of the biggest stories out there in FX is the strength in the U.S. dollar, making the strong move in EUR/USD one to watch to potentially grab short-term pips.

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 8833.78 +1.05%
FTSE: 5144.82 -0.12%
S&P 500: 2452.32 +2.77%
DJIA: 20426.58 +1.18%
US 10-yr 0.78% +0.059
Bund 10-YR -0.444% +0.013
UK 10-YR: 0.489% +0.053
JPN 10-YR: -0.001% -0.006
Oil: 28.70 +0.00%
Gold: 1528.90 +2.85%
Bitcoin: 5228.79 +4.47%
Etherium: 115.40 +4.96%

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar for U.S. & Asia:

  • New Zealand Current account at 9:45 pm GMT
  • Japan Trade Balance at 11:50 pm GMT
  • Australia Leading index at 12:30 am GMT (Mar. 18)

What to Watch: EUR/USD

EUR/USD 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

With no major catalysts ahead for the rest of the U.S. session, we’re looking at EUR/USD today, in which the bears took over strongly after weak European sentiment data earlier.  It’s more likely we’re seeing the downtrend on broad U.S. dollar strength, rallying on the huge financial issue of disruptions in the funding markets where banks go for operating capital.

With those themes in play, a short EUR/USD position makes sense, but after dropping a full ATR (around 120 pips) since today’s open, the market may find a bottom around current levels just under the 1.1000 major psychological level. If you’re down with this thesis, a conservative entry strategy would be to wait for a bounce to the previous minor support area (between 1.1060 – 1.1100) and reversal patterns to form. For the more aggressive, consider scaling into short position from current levels up to the broken support as the odds of further drop from here for the session is low given the stochastic signaling oversold conditions.

For the bulls, from technical perspective the odds are probably pretty good that the down move is done given the length of the move (1 daily ATR) and stochastic signal. For the brave, consider a long position at current levels, but it risk very small given that you will be going against a very strong market current.