A1 Trading Company

June 28, 2022

Best Trade Setups On Euro Pairs

Frank Cabibi

The euro has been especially weak this year amongst the resurgence of monetary policy tightening around the world. Inflation has impacted the market on a global scale as each country attempts to curb these numbers form going any higher. Here are some reasons, however, why we think the euro will not remain strong any time soon, as well as our best trade setups for these pairs.

ECB On Euro

The European Central Bank plans on raising interest rates for the first time in 11 years. Their plan is to reach a 2% inflation target in the medium term. However, the first move planned for July is a mere 25 basis points. They will need to up their rate of interest at a higher pace if they truly plan on reaching that target within the next year or so.

Most countries are struggling with slowing economic growth while on track to quell inflationary pressures. However, Europe is the laggard, and are not moving in the direction as quickly as others. Although wages are rising, the gap between that and inflation is a widening margin. Economists are concerned that the growing gap will continue.

As of now, borrowing costs are exceeding targets by 2.40% in relation to pre-pandemic levels. Other metrics say that rates are not as far from the targets as they think, but it is still somewhat of a concern in the eyes of an investor who sees a risk-off environment.

Euro Projections

The euro has yielded a negative interest since 2014 and expects to enter positive territory next quarter. German and French PMI both missed projections last week while consumer sentiment remains at a record low.

euro
German Consumer Sentiment

This is a result of the increased cost of living weighing on people's wallets. This kind of sentiment is expected to persist for some time, according to officials. The consistently slow growth paired with the incessant CPI numbers are very concerning over time.

Euro Trade Setups

EUR/JPY

euro

EURJPY comes down today, but flew up to the highs and established a triple top on the 4H. Rejection on the previous candle shows strong pressure to the downside after that inverted hammer close. ECB plans to hike their rate by 25 bp in July which marks the first time in over a decade. However, the euro is falling on the news as of now which might be because their central bank's policy might not be aggressive enough to fight inflation and reach the 2% target any time soon. Support lies on the rising trend line which is also paired with support around 141.5.

EUR/USD

euro

EURUSD looks bullish in the short term after bouncing off some clean support from the rising trend line on the 4H timeframe. The pair is still struggling with a directional shift as markets remain shaky. The long term falling trend line has served as strong resistance this year as price cannot seem to break above that. The pair might also break lower under the rising trend line and retest the lows at a double bottom.

EUR/CAD

euro

EURCAD is slightly higher after pulling back from the June highs. The pair has been ranging for the past three months in a sideways direction. However, there are some bullish indicators in the short term for the pair from the previous 4H candle pin bar pattern. Price could come up to the 1.35800s before seeing clear resistance as another test at the lows seem increasingly likely in this risk-off environment.

A1 Edgefinder

AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Shutdown Halted, Dollar Climbs

Just before the scheduled shutdown at 12:01 am on Sunday, Congress voted to extend the deadline for another 45 days. Yields jumped higher to above 5.1% which has remained elevated for some time. As we enter an historically bullish month for the indices, here are some setups on dollar, gold and index setups EdgeFinder Analysis […]

Read More
Yields Hold Steady After GDP

GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]

Read More
USOil Breaks Through the Highs! (+$2646.85)

Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptop-phonemenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram