Learn Trading -Forex Update: Watching US Data for the Next Trade Setup on EURUSD
To Get Ross’ Free Forex Update Analysis – Click Here:
We also see the market today underneath the black trend line. So, could we start to see? Could we be starting to see some changes in the directional purpose for this currency pair. The Forex Black Book has been green as it’s been moving up along that black trend line, so we know that the momentum has been bullish, but we also know that momentum can change if data and news dictates and strengthening or weakening of a currency pair. And of course with the GDP, if it signs of a strong economy, good news for the USD, then we potentially look for this to begin sliding back down. If it comes out and it’s actually poor and not as good as expected, then we might look for the return into the direction of the uptrend that we’ve been in since the beginning of the year.
So, two different dynamics that we’ll be looking for as we get that news. Let’s go ahead and zoom it one time here on the daily timeframe. Let’s actually go in two times. You could see the market was in a little bit of congestion up here. The little black box up there. It’ll be very evidence when we get down to the four-hour timeframe, but little black box. Congestion. We’re now underneath that blue zone. That’s the important one. If it stays underneath and we get good news for the US today, this potentially goes down, breaks through this green-shaded area, which is of course acting as our current support for the EURUSD. You could see so far yesterday and today finding support there right around the 1.0655-level.
A break of the 1.0655, 1.0645-level, the green-shaded area, we look for it to begin sliding even lower, purple zone or possibly even down here towards the yellow zone. Fibonacci from the low of the black trend line to the highest high on the chart puts the .236 at 1.0672. That’s right about where the current market price is. .382 of that same range is right down here at the purple zone. .618 at the yellow-shaded area. And of course the .786, .886 are way down here towards where this orange-shaded area is down at the very bottom of the chart. We’ll just drag that over a little bit as well, so we know where that will be if the market takes a signifiant turn lower.
On the other side, poor news, if it’s bad news for the economy, then potentially the bounce off the green zone. The next thing we’ll look for, for an opportunity would be the push back above the blue-shaded area. Back above 1.0720, we’ll challenge the resistance highs at the pink-shaded area at the top of the chart, and of course above there, we’ll look for the market to go higher.
Let’s take it down to the four-hour timeframe. And as we get down here, again, there’s that black box there and I said it would be more evidence as we got down here to the four-hour. Look at that black box right there. Really giving us a clue to congestion, and now we’re underneath there. So, for the day, again, as long as it’s underneath there and if we get a positive number on the GDP, we look for it to head down to the green zone. A break of the green zone, maybe looking for it to head on back down towards the 1.0600-level.
If you’re already in the shorts from maybe up here at the pink zone or under the blue zone, then continue to target the green zone or possibly all the way back down here towards the purple-shaded area on the chart. If you are not in the short, again, I probably would wait for the next 25 minutes to see what that news does. Otherwise, poor news, if it’s not great news for the US, watching for potential buys at the green zone or a push back above the blue-shaded area today. Forex Black Book is green. Again, gives us bullish momentum, but that’s really signifying this longer-term momentum, and again, I think some of this might be signs and evidence of a reversal, where we’re underneath the black trend line. We’ve broken underneath support. If we get good news, we may be looking, over the next few days, for this to change back to red and a resumption of the downtrend.
This video is for general information only and is not intended to provide trading or investment advice or personal recommendations. Any information relating to past performance of an investment does not necessarily guarantee future performance. Forex Traders Daily including its analysts shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Please remember derivatives and FX spot carries significant risks and may not be suitable for all investors. Losses can exceed your deposits.