Trade Idea: Buy EURUSD as momentum improves
After three days of narrowing price action, yesterday saw a renewal of investor demand for EURUSD.
This move produced the most positive performance of this month and, using investor buying interest at the key 13-day moving average as a platform, took EURUSD to test the 100-day moving average.
Although that important point was not breached on a closing basis, gains are supported by the 13-day average, by the intraday Ichimoku Cloud pattern and by positive momentum
A lack of follow through in Asia is a concern, but we look for setbacks to be limited and the market to challenge this month's highs.
Trade management and risk description
A move above 1.3180 would give the opportunity to raise the stop to break even, but the risk is that demand at the key 13-day moving average is being overrated and the market fails near the top of the Keltner channel/1.3200
Trade idea parameters
Entry: 1.3150/60 area
Stop: 1.3104 offered or close Thursday, May 9
Target: 1.3195 and 1.3243.
Chart - Renewed Buying
Chart - Positive Momentum
Chart - Longer Term
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