Now to move on swiftly to what I would like to show you today, it’s all about the EURO and an amazing chart pattern forming on the EURO. Please feel free to download our eBook to learn to trade forex and a little bit more about Chart Patterns.
Today, what I wanted to talk about is the EUR/USD. Now if you are new to FOREX trading, do not worry please click here and I can show you how easy it is to learn to trade currencies in a free 30-minute consultation.
Let’s talk about and understand what is going on with the European Fundamentals
EUR/USD traded in well-known ranges amid disappointments from both sides of the Atlantic. PMIs and another speech from Draghi stand out this week. Business confidence remains subdued according to ZEW. Draghi did not rock the boat, nor did inflation figures that confirmed the weak data. In the US, data came out worse than expected with retail sales standing out. While this buried those last hopes for a rate hike, it did not bury the US dollar
From the chart above it is very clear that the Euro is stuck in a trap zone which lies between 1.1280 and 1.1195 this is a 100 pip range. We should be trading this by going short at the top of the range. The second set of trades that should come to mind is the BPC Trades. We have also outlined the various major supply and demand areas on the chart which you should place alerts on.
IMPORTANT EURO EVENTS:
- Current Account: Monday, 9:00am. Mostly thanks to German exports, the euro-zone enjoys not only a wide trade surplus but also a similar current account surplus. In June, the surplus hit 28.2 billion. A similar figure is now expected: 27.2 billion.
- German PPI: Tuesday, 7:00am. Producer prices eventually feed into consumer prices. In Germany, the largest economy in the euro-zone, prices advanced by 0.2% in July. We now get the figures for July. A rise of 0.1% is on the cards now.
- ECB Economic Bulletin: Thursday, 9:00am. Two weeks after the European Central Bank’s decision, they publish the economic data that was available to them. This may shed some light on the current situation regarding inflation, growth and more.
- Mario Draghi talks: Thursday, 14:00pm. One day after the Fed’s decision, the president of the ECB has yet another public appearance, this time in Frankfurt. Will he contribute to higher volatility? His magic faded lately but he still has the skill to rock currencies.
- Consumer Confidence: Thursday, 15:00pm. According to Eurostat, the trust of consumers has eroded in August, falling to -9 points. This is the lowest since April. A small improvement is estimated: -8 points, still in the red.
- Flash PMIs: Friday at 8:00am for France, at 8:30am for Germany and at 8:00 for the euro-zone. Markit’s forward-looking purchasing managers’ indices are released for September for major countries. The numbers will be revised at the beginning of October. According to the final number for August, the French manufacturing sector was still in contraction with 48.3 points, under the 50-point threshold separating expansion and contraction. A rise to 48.4 is expected. The services sector fared better with 52.3 points and a slide to 52 is predicted now. German manufacturing looked sharp with 53.6 and for September, a small slide to 53.2 is projected. However, the service industry lagged with 51.7 points and here, an advance to 52.2 is estimated. The euro-zone saw 51.7 and 52.8 for manufacturing and services respectively. The manufacturing sector is seen as sliding to 51.5 while no change is likely for services.
- Belgian NBB Business Climate: Friday, 14:00pm. Despite coming from a small country, the broad survey serves as a barometer for the whole continent. During June and July, the survey was in rare positive ground. However, in August it fell back down to negative territory with -3.1 points. A score of -26 is expected here.
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Platinum Trading Strategy for the EURO in the Short Term
When someone first hears the words technical analysis, they tend to over think and start believing that trading is too difficult and time consuming. Believe me every single chart that you can see that I have published is very basic just outlining how the trade is produced.
We have a belief here at Platinum that –
Perfect Trade = Perfect Fundamental + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management
So with the above in mind, let’s talk about the piptastic opportunities that are coming to the Platinum Trading Floor in the month of September.
Before I move ahead ALWAYS USE STOP LOSSES IN TRADING AND ALSO WE ARE NOT GIVING YOU TRADING ADVICE THESE ARE JUST OUR VIEWS ON THE MARKETS.
IMPORTANT LEVELS TO KEEP AN EYE ON FOR BUYS AND SELLS AND HOW TO LEARN TO TRADE THE EURO
We are on a very famous bearish wedge pattern on the euro. We could see an up spike or a stop hunt to 1.1280 which is the point of control for the bears. This will be the entry as this is the perfect level to short the euro for a momentum move. This move could play out at the picture perfect.
How to learn to trade EUR/USD?
- Short the EUR/USD @ 1.1280 or nearest zone with a 25 Pips stop loss and a target of 25 Pips or the bottom of the Trap Range
- If we close below 1.1195 on a daily candle, then we can take a BPC Short @ 1.1195 with a minimum target of 1.1020
- Place alerts on the major and minor support areas and match them with the zones and go for 20/20 trades
There is a potential of over 500 Pips on this chart, follow the rules and bank the money!
All trades should have a stop loss not more than 40 Pips as stated on the chart. Place alerts at these level and watch the profitability in front of your eyes and we can have over a 200 Pips move in one day, so please learn buy and hold.
So how can you learn to trade the above technical events? Please book a one 2 one consultation here ??
The Platinum Formula:
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade
The Platinum Way
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If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.
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Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day!
Live from the Platinum Trading Floor.