Unyielding Momentum: U.S. Dollar’s Steady Strength Against the Euro

Published On: 13 February 2024, 9:20 PM | Tan Peng Chien, Dealer

Key Entry Price Pivot(s)
  • 1.08726

    Recommended Trade
  • Short at 1.08176
  • Stop Loss at 1.09048
  • Take Profit at 1.05827

    Alternative Case
  • Long at 1.08726
  • Stop Loss at 1.08218
  • Take Profit at 1.09991

  • As Asia celebrates the Lunar New Year, U.S. inflation looms as we saw the Dollar’s persistent surge against the Euro over the past month.
  • Looking back at the recommended trade in January, the previous short at the level of 1.1050 closed out with full Take Profit achieved at 1.0733 before the price rebounded shortly after to close the trading week.
  • Expectations are for the U.S. Dollar to strengthen further due to increased liquidity and existing price imbalances below current levels. A prudent trade strategy could involve a short on the pair at its present price to the range of 1.08176, with the goal of filling the price gap at 1.05827.
  • Alternatively, any weakness displayed by the greenback could also send the pair towards the level of 1.1000 with the pivotal point at 1.08726. Traders may consider initiating a long position with a target around the 1.1000 range to complete the final shoulder, potentially forming a Head and Shoulders candlestick pattern.