Tuesday, August 18, 2015

Euro reverses above Asian session highs

Despite morning star formation eur/usd pair went above Asian session highs and reversed. A tiny pin formed on 15 minute chart indicating some selling pressure coming near 200 ema, but that was not very strong signal to sell so I did not take any action on that. 

You may also see that Euro is not exactly going down below today’s low. If it stays above 1.1060 level throughout European session and forms a reversal pattern I might attempt a small long around 1.1070 level with a stop below 1.1050. 

The technical picture is not that clear with Euro as it is with British Pound, which is soaring on positive UK CPI data. We will probably have to wait for news from US to see whether rate hike is contemplated in the heads of FED guys or not. 

If not, not only Pound, but Euro also will rise versus US dollar. Next level of resistance for Euro is 1.1100 area. We have even number there and 200 sma on 15 minute chart. These should stall any Euro advance for today. 

Intra day trend is slightly bullish if above 1.1050. Pound/US dollar pair is clearly a better instrument for day trading this week. 

Euro reverses above Asian highs

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