While I’m waiting for my USD/JPY longer-term trade to choose a direction, I thought I’d check in on EUR/USD to see if it’s offering any interesting trade setup.
And look, an uptrend! As you can see, EUR/USD is being supported by the 1.1900 major psychological handle, which is right above the top weekly ATR level that we pinpointed earlier this week.
The 1.19000 retest would’ve been “meh” if it wasn’t near the rising trend line that’s also hanging around the 200 SMA support on the 1-hour time frame.
For now, EUR/USD doesn’t look like it’s ready to pick a direction just yet. Can’t really blame the bulls and bears since the NFP report is only a few hours away. According to my buddy Forex Gump, odds are tilted to the downside though this week’s strong ADP report is keeping the upside surprise flame alive.
If the NFP report and the ISM manufacturing PMI do print lower figures like many are expecting, then we could see EUR/USD revisit the major 1.2000 handle. What’s more, it could extend its bullish momentum as traders brace for next week’s ECB meeting. I’m still kicking myself for not waiting for that one when I traded an uptrend, btw.
But if Uncle Sam’s reports show upside surprise, then the Greenback could go back to flexing its muscles as it has been doing for the better part of the week.
Either way, I’m staying out of commitments today. I’m still watching my USD/JPY triangle trade after all. Of course, I wouldn’t mind jumping in if today’s reports inspire strong trends on the majors.
What about you? What setups are you looking at today?
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