THE CURRENCY TRADER’S BLOG
A possible Long-Term setup Trade would be the EURJPY. So let us look at the weekly chart (posted below) You will notice on the hard right edge Price has managed to breakout higher after a consolidation period in excess of 3 months. We have all the requirements to back up the upside narrative. Indicators doing their bit too. Let’s look at what we do have:
- Price is trading above the moving averages
- Price is trading above the central pivot levels for each timeframe
- RSI is in positive territory
- MACD is the only one with a question mark. It’s on its way to moving bullish — not quite there.
So risk exposure wise – more pros, fewer negatives. Where is there a possible target? Well, the 2021 high back in May would be one possible
JPY crosses in particular looks best. Carry trades due to better yields against a weakened JPY.
US FOMC stats on Wednesday, the one to keep an eye on. There are other important US data points – look at the economic calendar attached and make a note.
EU / German ZEW Economic Sentiment out tomorrow — contractions are likely, HOW BIG ARE THEY EXPECTED TO BE THIS TIME ROUND. Last week’s German data made for poor reading and had a major effect on Price action.
Good Morning Traders,
Here todays economic stats