Eurozone weakness is finally shining through all the geopolitical nonsense in the market at the moment. I know the ECB meeting is tomorrow but we still have about 36 hours before the release and it’s technically breaking down so I’m looking to get in with a small position on the next bounce back towards resistance.
If the German and/or Eurozone PMI data is weak I’ll cancel this order and get in at market. I’ll definitely be closing out all EUR positions before the ECB meeting tomorrow.
Current Technicals: Down
Hourly Resistance: 1.1176
EURUSD HOURLY CHART – Current Price 1.1146
Current Fundamentals: Down
Central Bank Sentiment: Down
Geopolitical Impact: Neutral
Upcoming Potential Fundamental Drivers
Short positions below 1.1176 with an initial target at 1.1050
This is a technical trade so I’ll be using Trendline Trader to get me in and out of the trade.
Entry level is 12 pips below the trendline @1.1163 at the moment.
Stop Loss: 1.1188, Take Profit: 1.1088
The trade will be split up into 4 components to allow me to manage the position better.
Session Timer is on (orange section) which means the order will be cancelled 5 minutes before the German PMI data.
EURUSD failed to rally to the sell zone so the order was cancelled.
Potential Live Trade at Market on Economic data
The EURUSD dropped from 1.1155 to 1.1130 after weaker than forecast German PMI economic data.
The follow up opportunity was the release of the Eurozone PMI data which also came in weak.
I initially sold EURUSD at 1.1138 but closed the trade out at 1.1140 as the “Price Action” after the release signalled it wasn’t going to fall further.
EURUSD should have fallen further after the Eurozone data but it didn’t and this is reflected in the price action after the release.
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