With a break higher of previous high on 1h chart, we look for EURUSD pushing higher towards 1.185 area. Our bullish view will be invalidated when price breaks below 1.173 level.
Senate has failed to pass Trump's Healthcare act to replace Obamacare. This is a major defeat for Trump and we should a delay for Trump to push forward Trump's healthcare act. This news came out to be negative USD, putting pressure on USD which is already beaten down. Due to investors forsaking USD and a quiet US session, we see other currencies such as AUD, CAD and EUR strengthening against USD.
Lately, there have been confusing messages sent out from ECB, particularly in the course of policy. ECB Draghi highlighted the possibility of policy change from accommodative while another ECB member has stated that accommodative policy should remain intact for years to come since ECB goals have not been achieved. Looking at the figures, most figures have improved, with market already pushing up EUR. Over the next few meetings, there is a need to pay close attention to the tone of Draghi to provide further policy direction, at the moment EUR has been up significantly. Once confusion has been cleared, it will provide clearer direction for EUR. A hawkish statement from Draghi should provide another push for EUR to the upside, but there may be concerns of strong EUR affecting the Eurozone exports.
We took this trade on Friday based on a pin bar setup with support at 1.13. Trade was in our favor by 20 pips but we decided to close if off for the weekend.
Price consolidated within a triangular pattern. In 4h, we observed a bullish candlestick pattern supported by upward trend line. In 30mins, price also broke above downward trend line. Hence, we were short term bullish bias at 1.1258 with stop loss 1.123 and take profit 1.1325.
However, our position got stopped out at 1.123 shortly after entry.
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