PLAYING THE BOUNCE SHORTING THE EURUSD

Jan Aldrin Laruscain

SELL EURUSD

Close Time

CLOSED

1.06540

Entry Price

1.05875

106806.00000

1.15732 +0.00416 +0.36%

42.6

Pips

Profit

1.05875

1.06114

Exit Price

1.06540

Entry Price

106806.00000

Fundamentals

The ECB has been strongly apprehensive on the raising of interest rates for the entirety of 2022—it wasn’t until the later months of the year where the European Central Bank finally woke-up to the clamor of the economy following the continuous depreciation of the Euro against the dollar. And with recent events, the Euro has once again shown it is indeed in need of further hikes as it sees inflation going further to 10% according to the ECB.

Technicals

On the daily timeframe, EURUSD is clearly bound south as it has recently tapped into a strong resistance area. It is important to note that this zone has strong psychological relevance as it has been holding price down since the year 2020. With so, the team is looking to approach this set-up as a pullback opportunity/countertrend trade.

PLAYING THE BOUNCE SHORTING THE EURUSD_1

In a much smaller timeframe, we have marked a trigger—of which the team could use as a potential entry point in shorting the EURUSD. With the recent rejection from the lower timeframe, we are expecting this move to provide momentum to price for it to reach 1.05875.Our recommendation is to go short upon lower timeframe breaks of support (m5, m15) and hold until 1.05875. Set Stop loss at 1.06806 and TP at 1.05933.

ENTRY 1.06540

SL = 1.06806

TP = 1.05875

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