On 25th March 2015, I posted the possible areas which we could sell the EURUSD. To view that posting, please click here. Recent price action suggest that the EURUSD might be heading towards a sell even sooner than expected. However I am not jumping the gun and pressing the sell button ASAP….. The Euro Bond buying program of the ECB is entering its fourth week with a goal of 60 billion per month. The round number of 1.1050 seems to be a strong resistance for the time being. Nevertheless, I believe this Friday’s Non Farm numbers will dictate the eventual movement of the Euro.
My trading plan is simple if EURUSD indeed moves before the NFP numbers. The highlighted area is the current range movement of the EURUSD. I will wait for price to close below the range and reverse to test the previous support area which is now a resistance area. A sell stop would be placed at the low of price action as shown by the arrows. First target would be 1.0672 or 1.0612 depending on where your entry is at that period. Then leave the remainder of the trade to run its course for a 1.000 target. I will update on new target or cancel entry if necessary.