WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: EUR/USD returns to Pre-FOMC levels

Posted by Edward Moya on Mar 19, 2015 9:03:00 AM

WWM EURUSD MAR 19 2015

EUR/USD begins trading during the New York session right around the same levels it traded before yesterday’s FOMC decision and press conference.  The volatility that took place yesterday squeezed out many euro short positions with price surging all the way towards 1.1040.  My colleague Joseph Trevisani shared this great post - http://bit.ly/195uIA4 that explains what happened to the euro at the close of the New York Session. 

Currently price action on the 240-minute EUR/USD chart shows that the recent rally is respecting the trendline off the 12-year low.  Volatility may remain elevated, but the bearish trend is poised to continue on any clean break of this technical region. 

If we do see price consolidate over the next couple of weeks, the 50-day SMA, which is trading around 1.1250, will serve as critical resistance.  Key support will come from the 1.0450 – 1.05 zone.  Eventually, my downside targets will target a drop towards the 1.0250 level, followed by 1.0050. 

The trade: Sell EUR/USD 1.0700, with a stop loss at 1.0750 and take profit at 1.0550.  The risk/reward ratio is 1:3

Edward J. Moya

Senior Market Strategist

WorldWideMarkets Online Trading

Topics: EURUSD, EURO, Euro Zone

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!