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Finally eur/usd cover its all weekly losses at the end of Friday session, currently the pair trading over 1.23 , below major resistance 1.2350 level. if pair lose its steam and bears take over next week, the pair can go back to 1.20 physiological level. However , hawkish tone of ECB would not let the pair go back to the woods again. we have upcoming major macroeconomics data on the calendar like ADP PAYROLL, NON FARM PAYROLL ,This data can take dollar to fresh lows if release comes not up to expectations.
On the other hand , trump new tariff plan on steel and aluminium can bring some more stress in coming trading sessions. its not only the major economics going to effect by this decisions but U.S itself digging grave for its own industry. U.S domestic companies can not fulfill its steel and aluminium demands which ultimately effect the factory orders. It will do nothing but triggers war trade between china and other other steel export countries. U.S President need to understand the flow of economy. I hope this action will not lead to unfair trade war and WTO will interfere and take appropriate action against U.S.
The following graph shows setup for eur/usd for next week any break above 1.2350 will lead the pair to February highs of 1.25 or even more fresh highs.
Trading plan , look for upside break of 1.2350 , open long position with stop loss at 1.2300 and take profit at 1.25 , take profit 2 at 1.26.
Alternative plan , look for reversal at 1.2350 , open short positions with stop loss at 1.2400 and take profit at 1.2200 , take profit at 1.200