EURUSD dropping perfectly, remain bearishSell below 1.0604. Stop loss at 1.0638. Take profit at 1.0494.
Reason for the trading strategy (technically):
Price is dropping nicely towards our profit target. We remain bearish below 1.0604 resistance (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance) for a further push down to 1.0494 (Fibonacci extension, horizontal support).
RSI (34) is seeing strong descending resistance pushing price down.
Stochastic (55,5,3) is also seeing strong resistance below our 93% level that is pushing price down.
Reason for the trading strategy (fundamentally):
The main news event today is the U.S. Durable Goods Orders. Durable goods are typically sensitive to economic changes. When consumers become sceptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The headline figure is expressed as a percentage change from previous months. A decrease in this value would mean a weaker USD. Forecasts for this month is expecting a significant rise from last month which means a stronger USD. This goes in line with our bearish EURUSD view.
