EURUSD is expected to come under selling pressure over the next few days. China seeing hot money inflows will use its influence in the US to make the US stabilise the USD in the short-term. Meanwhile, stock markets are experiencing a moderate wobble after recent gains, not helped by today’s weakish Beige Book and distillated data, yesterday's downbeat US housing data (which remains a sensitive data source for markets due to its implications for consumer health) while disappointing profits from China Mobile Ltd. and China Telecom Corp. didn't help in Asia. This background has taken the wind out of the sails of EURUSD's march toward 1.5000. However, another 25 S&P 500 companies have reported Q3 earnings with EPS growth higher than last week (up 31.5% vs 19% last week). Also, one should remember that only around 20% of the two-year US stimulus package has been spent so far, so US economy is unlikely to dip back into recession.
EURUSD Short Term Trading Strategy
Close Long at 1.5 from 1.467 target 1.5
Technical Trading Model
Remain long from 1.4781 stop at 1.4812
EURUSD breaks key 1.5000 level
Linear Mode
