USD to rise against EUR at the start of the year

Published On: 2 January 2024, 9:20 AM | Peng Chien Tan, Dealer

Key Entry Price Pivot(s):
  • 1.0830
Recommended Trade:
  • Short at 1.1050
  • Stop Loss at 1.1174
  • Take Profit at 1.0733
Alternative Case
  • Long at 1.1125
  • Stop Loss at 1.098
  • Take Profit at 1.125
  • With price filling an imbalance as suggested last month, we could expect a similar scenario as we usher in the new year.
  • A fair value gap can be spotted between the prices of 1.0825-1.0875, with its sizing as well as liquidity below the level of 1.0723, a possible outcome would be for price to push past the imbalance and dive past the targeted liquidity level. A set stop loss level of 1.1174 would allow this trade to have a healthy 1:3 risk-to-reward ratio.
  • With respect to the current trend, the Euro could also continue to strengthen against the U.S. Dollar and a stretch towards the previous high of 1.1276 is also possible.