4:46a GMT - The USD has made an amazing recovery against the Euro in recent days, and signals might point toward a continued recovery Thursday. We have two event risks with the EUR/USD we will have to watch closely to see how the market reacts: the US GDP in the afternoon and Germany's unemployment rate in the morning. As always recently the USD is also heavily tied to the performance of US stocks - a recovery in US stocks will likely mean an increase in the EUR/USD as risk appetite creeps back into the market.
With over 300 pips dropped in 2 days we are at risk of a better correction in the pair, but we will continue to sell the trend and look to enter shorts on rallies and bearish candlestick signals near resistance.
Trading Idea: Prefer shorts under 1.4800 (first resistance at 1.4750) with targets at 1.4755, 1.4725 and 1.4680.
Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups