The US Dollar had a bad week as the Federal Reserve's announcement of a new open-ended Mortgage Backed Securities (MBS) purchasing program on Thursday stoked risk appetite and led to concerns about dollar dilution. With the greenback at a critical point, markets will be monitoring next week's series of speeches from Fed officials for more policy guidance in the coming months. I would expect that next week we will get a pullback in the Euro to test the 1.3000 and could possibly wick as low as 1.2965. I believe price will hold and reverse in this area to test the 1.3200/1.3214 levels. I have a pending sell order placed at 1.3205. If price reached 1.3214 area I would tend to favor the downside targeting 1.2690 level and 1.2455 respectively. If price reaches 1.2455 I will look for a long position in this area and target ultimately the 1.4300. Of course I expect several levels along the way and if I have time in my schedule I will update here. I must note that next week we could get the run up to 1.3214 first without the pullback. I will not ever chase any trade I will wait and if I get the nice pullback to 1.2965 then I will go long to 1.3214. Regardless this is my plan and I am happy to share.
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