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Trade idea: Ride the euro volatility wave
Ian Coleman from First 4 Trading is looking at euro dollar. He says trading this week has been mixed and volatile, and this has been highlighted in the Dollar Index, which has seen two up days and two down days. He expects this volatility to continue.
Ian explains the EU Q3 GDP data will be having an impact on this trade; it will be closely watched for deciding if the Eurozone’s feeble recovery is still alive. There are more doubts after last week’s news that annual inflation unexpectedly decelerated to a 0.7 percent annual rate — a retreat that inspired the European Central Bank to announce a surprise 25-basis-cut in its policy rate.
On a technical side, Ian says the price action has been resticted to last Thursday's candle range and that there is some resistance at 1.3511 and 1.3528.
His call is a mixed view - to sell at 1.3512 or buy at 1.3436. A stop can be placed at 30 pips. For selling gains, he is look to 1.3467 and 1.3436, whilst buying a dip 1.3480 and 1.3512 come into play.
In the US, investors also await the confirmation hearing for Federal Reserve chair nominee Janet Yellen, which they monitor for any indication on when the central bank will start slowing the pace of monetary stimulus.
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01:29 minutes
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