The EURUSD is trending lower. When it failed to take out its Asian session high and began to reverse lower, we entered short risking 9 pips for a potential 33 pips to our daily target at 1.0796.
The trade moved lower going into the U.S. Open and we protected our profits by tightening up our profit stop as price continued lower… exiting the trade at our target price – anticipating the 1.0800 area would find some buying interest.
If 1.0775 gives way, I anticipate a move to the 1.0700 area. This Friday’s PMI data will be closely watched by the markets.
Apple’s negative guidance around Q1 earnings as a direct result of the coronavirus in China will likely also weigh on currencies with high exposure to China – which includes the Euro. I will continue to look for EURUSD and EURJPY short opportunities this week.
Good luck with your trading!