Forex Signals – Euro Dollar Red Flag
In our Forex Signal yesterday we expected price to break out towards the downside. Price end up moving sharply lower and closed quite bearish on the daily chart.
Fundamentally, the main impetus behind the strong down move yesterday was the fear that Italy, one of the top 5 debtor nation, may default on its debt obligations. Buying US dollar as a safety net turned out to be a better option.
Let’s quickly look at EURUSD daily chart:
EURUSD Forex Signals (click to enlarge)
1.3600 was the key support area, which was broken yesterday. This area still holds the significance as price can come back to re-test it.
Keep an eye on the Trade balance and Unemployment Claims data from US later today which can effect the movement of EURUSD.
Forex Trading Signal : Our primary outlook is to stay with the trend and look for short opportunities as they arise. If we see a pullback then expect price to reach 1.3600. At 1.3600 wait for price to either break above to look for longs or show signs of downtrend continuation for further short trades.
