Euro Up Ahead of ECB Rate Decision This Week

Quote of the day: “A mind too active is no mind at all.” - Theodore Roethke

EURUSD – 1.4219 @07:09 GMT

Good morning, traders. Upside remains under pressure as the EURUSD rallied after initially declining to 1.4060, following the NFP which came out above expectation – at 216k Vs. consensus of 190k. The unemployment rate dropped to 8.8%, the lowest level in two years. My small long position at 1.4170 got stopped on NFP’s spike down below 1.4100 but managed to recover afterwards, buying on the return above 1.4150. The euro is likely to hold into the top territory ahead of this week’s key event in the Economic Calendar – the ECB interest rate decision on April 7th, when the ECB is expected to announce its first interest rate hike since July 2008. I remain bullish on EURUSD and will look for more buying opportunities either on the potential break above 1.4260/80 or on pullback towards 1.4100-1.4150.

Trading strategy: looking to buy at 1.4245, initial stop at 1.4185 (0.5% risk), target open

Support: 1.4130/50, 1.4100, 1.4000/30 and 1.3930/50
Resistance: 1.4220/40, 1.4260/80, 1.4300 and 1.4350
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – slightly bearish

Have a good day

More in Analysis and forecasts »
Post tags: breakout trading, ECB, EURUSD, Interest Rate Decision