Welcome trading legends,
In this blog, we’ll be trading the EUR/USD asset using the signals provided by the Tools Trades website and the IQ Option broker. Be sure to stick to the end of the video as I’ll be sharing a special promo code with you.
Allow me to explain why I’m trading this particular asset.
The Euro is trading nearly flat late in the session on Thursday after clawing back earlier losses as traders await Biden’s stimulus plan. Expectations for President-elect Joe Biden’s fiscal stimulus pushed yields of U.S. government bonds higher, helping to underpin the U.S. Dollar.
The 10-year Treasury yield rose after CNN reported the stimulus will be around $2 trillion, adding support for the dollar and weakening the Euro and commodity-linked currencies.
EUR/USD accelerates losses and drops for the second session in a row on Thursday amidst the increasing risk-off context and despite the imminent announcement of further US fiscal stimulus. The view on the exchange rate has been also highlighted in recent speeches by ECB officials. The selling pressure around the currency stays well and sound and now forces EUR/USD to recede to the proximity of the key support at 1.21 the figure.
The Euro retreated early in the session despite positive news from the Euro Zone’s economic powerhouse.
Germany’s economy shrank by 5% in 2020, less than expected and a smaller contraction than during the global financial crisis, as unprecedented rescue and stimulus measures lessened the shock of the COVID-19 pandemic.
The upside momentum in EUR/USD run out of steam in the 1.2350 area earlier in the month and in spite of the corrective downside. At the moment, bears are in control and the next cushion is close – the round figure mark 1.21 level provided support in early December then 1.2070, and finally 1.200 round figure mark. On the flip side, a break above 1.222 previous swing high temporarily capped EUR/USD on Tuesday and followed by 1.2350 , 2021 high.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.2025 will change the main trend to down. A move through 1.2349 will signal a resumption of the uptrend.
The short-term range is 1.1800 to 1.2349. Its 50% level at 1.2074 is potential support. This level is controlling the near-term direction of the EUR/USD. A failure to hold could trigger an acceleration to the downside.
On the upside, a pair of 50% levels at 1.2187 and 1.2230 is potential resistance.
Short-Term Outlook
The price action suggests that the major players are likely on the sidelines until they hear what Biden has to say. If he promises too much stimulus then the EUR/USD could fall since this could speed up the economic recovery and encourage the Fed to end their bond purchase stimulus more quickly.
On the daily chart, 1.2230 is a potential trigger point for an acceleration to the upside and 1.2074 is a potential trigger point for an acceleration to the downside.
As you can see the signals from the Tools Trades website have worked!
The promo code that you see on the screen will give you more trading signals if you use them on the Tools Trades website.
Be sure to watch my other videos on the channel and read the blog page so you learn more. If you want more videos like this be sure to like and subscribe. As we march into the New Year I wish all of you a great trading year ahead with many profitable signals.
May the Forex be with you.
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