6:26a GMT - Markets are not for the faint of heart right yesterday. We saw stop-loss hunting in the thin markets before the rate decision announcement (stop-loss hunting: where large volume traders move price action in thin markets with the goal of triggering stops creating a squeeze situation) that was helped by general dollar weakness. USD rate was kept the same, as expected, and reiterated that it would stay low for an extended period of time. As long as Euro economy continues to show signs of strength (fueling risk appetite) coupled with a higher interest rate, this should set up a bullish EUR/USD situation for the months to come.
Technically we saw the price action bust out of our trend resistance yesterday (around 1.4800) where it is currently consolidating below 1.4850. Given the fundamental picture given to us by the FOMC decision and the technical higher highs and higher lows I am looking to buy on dips now.
Trading Idea: Looking to buy dips above previous trend resistance (now support) currently between 1.4810-1.4790. Long targets at 1.4845, 1.4875 and 1.4920. I will also consider buying on a sustained break of 1.4855.
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