Trading outlook – EUR/USD
Originally updated: 06:45am
Currency Pair: EUR/USD
In today’s trade set up we will be focussing on short term selling opportunities on the EUR/USD.
After a more dovish tone from ECB President Mario Draghi yesterday, the euro rallied to new highs, only to see strong offers step in after news spread across the wires that the ECB are preparing a broad based QE package for their Janauary meeting. From the US we have NFP out later today which if better than expected should bring further selling of the EUR/USD.
I expect this pair to continue its down move during the session and eventually hit 1.2320. If the market does retrace back up then there is a nice confluence zone of resistance that traders could use as a reference to sell from again.
The confluence zone is at 1.2430-1.2440
Stop loss could be placed at 1.2480
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Source:: Trading Outlook – EUR/USD