Nick Cawley, Analyst, May 9, 2017
My Picks: Short EURUSD.
Expertise: Fundamental/Technical Analysis.
Average Time Frame of Trades: One week to several weeks.
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The recent French presidential elections have left a ‘gap’ in the EURUSD chart that needs to be filled if the single-currency is to push higher against the greenback. The daily chart shows a gap between 1.08207 and 1.07774, made on the day that Emmanuel Macron went through to the second round of the presidential elections – which he subsequently won.
Chart: EURUSD Daily Timeframe
And looking at the 20-, 50- 100-day moving averages, the technical set-up for EUR is still pointing to the downside. With the pair still trading below the 20-day ma, currently at 1.09286 on the one–hour chart, the upside currently remains capped.
Staying with the one-hour chart, a doji appears with a high of 1.10241, a potential reversal signal for the single-currency.
Chart: EURUSD One-Hour Timeframe (May 3 – May 9, 2017)
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Entry – Set up short position at 1.09286.
Stop – May 8 high of 1.09485.
Target 1 – Top of gap at 1.08207
Target 2 – Bottom of gap at 1.07774.
---Written by Nick Cawley, Market Analyst
You can follow Nick on Twitter @nickcawley1
