EUR/USD Reverses Gains

The dollar bounced off of two-year lows this morning as U.S. data pointed to a firm manufacturing activity, which led to the EUR/USD losing some steam after reaching its highest level since 2018.

We, therefore, sold EURUSD at 1.1897 with SL at 1.2025 and TP1: 1.1785, TP2: 1.1615, TP3: 1.1450. The EUR shows weakening potential on profit-taking but we also see fresh momentum in the Greenback. Having hit the psychological resistance of 1.20 the market could break lower offering more growth for the Greenback.

In the meantime, technical indicators remain in overbought areas which suggest at least a mild correction lower that we’d like to use to leverage on this trade. After a bullish start this Monday, the time could be just right to see bearish trends in the EUR/USD before we head into the NFP release this Friday.

Frank Walbaum

Recent Posts

EUR/AUD Set To Depreciate Further

Posted on 03 September, 2020 at 15:08 GMT

EUR/USD Set For More Losses

Posted on 25 August, 2020 at 13:45 GMT

GBP/AUD Could Break Higher Again

Posted on 12 August, 2020 at 13:12 GMT

EUR/USD Could Head Lower

Posted on 30 July, 2020 at 12:08 GMT