Trade plan 08/09/2017
The general picture: The euro is still growing, but soon the stop.
The main news of the week was the ECB's decision on monetary policy. Contrary to expectations, the head of the ECB, Draghi and his colleagues, not only left the rates unchanged (the base 0% for deposits for banks and all the minus 0.4%) and left unchanged the program for pumping liquidity markets but did not give any information on plans to turn the monetary policy. Draghi, however noted the obvious unwillingness of the euro's growth, saying that the growth of the euro creates hindrances to economic growth and hinders inflation.
It would seem that it's time for the EUR/USD to stop the growth. The Fed is on the path of tightening monetary policy, the ECB persists in easing and there is no reason for continuing growth. Nevertheless, the euro's rate hit a maximum of the current week at 1.1950 and pretty quickly reached the long-term maximum of 1.2065. The breakdown happened already on Friday morning.
So, the plan for EURUSD:
To buy late. The purpose of growth is 1.2180. You can sell from 1.2180 stops not more than 45 pp.
The level for sale on the breakdown is 1.1905 but probably, a new level will be formed to enter the breakdown down, above that.
