Yesterday, the euro and the pound sterling continued to trade mixed against the US dollar. As for the euro/dollar, it has gone too far as part of a correction, and I think it is time to go down. The price needs to retest the level of 1.1700. Speaking of the current trend, bears are clearly taking the lead, at least according to the daily trading chart. In this case, I think that counter-trend trading is too risky. However, sometimes I can take the risk, provided that a profit-to-loss ratio is rather great. In general, it is better to enter the market with short deals on pullbacks.
As for my trading strategy regarding this currency pair, I continue to hold short positions opened earlier with the help of the pending order. The starting point for a sell deal was a fairly strong resistance level. If everything goes according to the plan, the profit will exceed the risk. I hope that the fundamental news will help me do that in the near future.
Let me remind you that short positions can be opened from the resistance level of 1.1865. A stop-loss order can be placed at 1.1910, and a take-profit order can be set at the level of 1.1740.
According to the trading chart, the quotes are moving in a downward trend, that is, sellers are driving the price. Investor sentiment on this currency pair has been bearish for more than a day. From the point of view that the trend is our friend, market participants need to trade in the direction of the price movement. Thus, I recommend opening short positions below 1.1950 with a view to reaching the target points of 1.1700 and 1.1610. A possible pivot point is located at 1.1950. Alternatively, if the price breaks through the 1.1950-1.1970 price range, the way to the levels of 1.2030 and 1.2130 will open.
As for today’s macroeconomic calendar, the data on initial jobless claims in the United States as well as Federal Reserve Chairman Jerome Powell’s speech may stir up the markets today.