EUR/USD Short – 30-Minute Timeframe: Capitalizing on Strong USD
Updated
We’re taking a short position on EUR/USD on the 30-minute timeframe, driven by the recent release of the U.S. Core PCE data, which came out neutral at 0.2%. This data supports the narrative of a strong U.S. dollar, contributing to further downside potential for the euro, which is already trending downward.
Key Levels:
• Entry: Positioned after the release of the Core PCE data, where the euro showed weakness against the dollar, confirming our short bias.
• Target: Aiming for lower levels near the key support zones as indicated on the chart. These areas align with the expected continuation of the bearish trend.
• Stop-Loss: Placed above the recent high to protect against any potential retracement or unexpected bullish movement in the euro.
Market Context:
The neutral Core PCE data at 0.2% keeps the dollar strong, as it supports the Federal Reserve’s stance on maintaining higher interest rates for longer. This macroeconomic backdrop, combined with the technical downtrend in the euro, presents a favorable setup for short positions in the EUR/USD pair.
Rationale:
The euro is under pressure as the U.S. dollar gains strength from the neutral Core PCE data. The market is likely to see further downside, especially as traders digest the implications of sustained high interest rates in the U.S. This trade aims to capitalize on the momentum in favor of the dollar, with a focus on key technical levels that may act as targets for the bearish move.
Risk Management:
To manage risk, we are implementing a stop-loss above the recent highs and will monitor the trade closely as it approaches key support levels. The risk-to-reward ratio is favorable, given the strong market sentiment against the euro.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Key Levels:
• Entry: Positioned after the release of the Core PCE data, where the euro showed weakness against the dollar, confirming our short bias.
• Target: Aiming for lower levels near the key support zones as indicated on the chart. These areas align with the expected continuation of the bearish trend.
• Stop-Loss: Placed above the recent high to protect against any potential retracement or unexpected bullish movement in the euro.
Market Context:
The neutral Core PCE data at 0.2% keeps the dollar strong, as it supports the Federal Reserve’s stance on maintaining higher interest rates for longer. This macroeconomic backdrop, combined with the technical downtrend in the euro, presents a favorable setup for short positions in the EUR/USD pair.
Rationale:
The euro is under pressure as the U.S. dollar gains strength from the neutral Core PCE data. The market is likely to see further downside, especially as traders digest the implications of sustained high interest rates in the U.S. This trade aims to capitalize on the momentum in favor of the dollar, with a focus on key technical levels that may act as targets for the bearish move.
Risk Management:
To manage risk, we are implementing a stop-loss above the recent highs and will monitor the trade closely as it approaches key support levels. The risk-to-reward ratio is favorable, given the strong market sentiment against the euro.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Trade active
We’ve hit the previous low. With some significant news expected in the next few hours that could impact the dollar, it’s a good time to take partial profits or close the position fully and enjoy the weekend! Congratulations to everyone who took this trade—have a great weekend!Trade closed: target reached
Target was reached! Congratulations to everyone who took this trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.