EUR/USD Heading back to Ichimoku after reaching bullish target

EUR/USD Heading back to Ichimoku after reaching bullish target

1:00 PM (EST) Update

EUR/USD: Heading back towards Ichimoku after reaching our bullish target at 1.1270

Trading idea: Short positions below 1.1158 targeting 1.1025

Technical analysis: The EUR/USD rally could be over with the economic data cooling off. The pair danced all the way up to a key resistance level at 1.13 and now moving back down towards the Ichimoku cloud. The RSI is heading down below the neutrality area and the pair is testing the pivot point of a.115.

Economic Perspective: Eurogroup is meeting in Brussels all day today, attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank.

Next major event is the German GDP on Wednesday which is projected to come out lower than last quarter. An upside surprise could move Mr. Euro higher.

Alternative Scenario: If the pair is unable to break inside the Ichimoku cloud or the pivot zone, look for further upside back to 1.13 above 1.115

Where I’m setting my stops and limits:

Support Levels Turning Point Resistance Levels
1.0916 1.115 1.1375
1.0809 1.102