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Coleman: Why it's time to buy EURUSD
Concerns surrounding slowing growth in the eurozone have caused the euro to fall to a one-week low in early trading on Thursday. This dip lower is exactly what Ian Coleman from First 4 Trading was looking for as he follows the swings of the currency pairs’ AB=CD formation. The absence of inside soldiers on the daily chart has signaled a lack of momentum behind this move lower, positioning EURUSD for a move higher.
Investors will be focused on the euro zone PMI data out later in the day as a signal for the market. The European Central Bank’s stress test conducted on the European banking sector out on Sunday will also be a factor in investors trading strategy. Ian notes that the US Dollar Index has been capped and price action on the intraday chart has been choppy over the past several days as investors await certain catalysts. He states that there is no clear indication that the overall trend for a move downward in EURUSD will be coming to an end, although there is scope for this AB=CD formation to hit USD 1.2592.
An entry point for this trade can be located at USD 1.2592. Ian is targeting a move to USD 1.2730 and then as previously mentioned USD 1.2950 in the medium term. A stop can be placed at USD 1.2562.
01:24 minutes
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