- Summary:
- EURUSD bullish market move continues as the ECB gives its blessing. While in the rising channel, the common currency looks strong.
The EURUSD run is nothing short of impressive. At this pace, the Euro remains one of the strongest currencies of the year, with the EURUSD leading the other pairs.
Consider the move following the Fed’s decision from two days ago. The Fed message triggered a move higher in AUDUSD, EURUSD, GBPUSD, and so on. However, only the EURUSD remains at the highs, as the AUDUSD and GBPUSD already retraced more than half of that move. Not the EURUSD.
The ECB helped too. Yesterday’s #AskECB event on Twitter sealed the blessing that the ECB is giving to the strong Euro. Isabel Schnabel, a member of the Executive Board of the ECB, took questions addressed with the #AskECB hashtag and answered some of them. On one answer, she said that the Euro appreciates for good reasons.
Having said that, the EURUSD looks extraordinarily strong here. Selling it is a contrarian trade that, as explained above, goes even against the central bank’s view. Hence, one option is to stay long and make the most of the rising trend. Or, to sell but only after a break.
EURUSD Technical Analysis
While in the rising channel, shorting the EURUSD pair is dangerous. Hence, bears should wait for a break below the channel before going short with a stop loss at the highs and a take profit level that respects a risk-reward ratio of 1:2 or bigger.
Dow Jones Daily Chart
