Shorting futures EURUSD on intraday swing trading basisBlue chip US stocks led by the NASDAQ having revenues in forex exposures tumbled on Thursday, Tech and Biotech quarterly results disappointed. Cheerful economic reports fueled to uncertainty about the outlook for interest rates, a day after data showed the US economy had slowed to a crawl in the first quarter and the Federal Reserve pointed to weakness in the labor market and other areas of the US economy.EURUSD began squeezing all the way to 1.1250 in a news vacuum before reversing hard on the day. On the other hand the move comes after the European Central Bank announced plans earlier this year to launch EUR60 bln a month of quantitative easing in a bid to kick start the Euro zone economy.It’s too early to talk up the bearish case as this is first sign of any real softness in six trading days. We’ll have to see next week’s data and a plunge back below 1.1050/1.1000 on a daily closing basis before we can wonder whether the highs for this correction are in.Technical and Derivatives watch:Between the tug of war of bulls and bears, the USD made a comeback attempt on the day, which so far looks successful in pairs like AUDUSD and USDJPY, while on intraday chart of EURUSD a red hanging man pattern candle occurred earlier today on steady upswings with a diverging line RSI (14) line. Early signs of red line cross over on stochastic is likely to occur around above 75 levels which suggests an overbought situation on intraday terms, however on medium term basis we still see uptrend on this pair.Considering intraday swings, we see some shorting opportunities on futures with strict stop loss of around 1.1265 for the targets to achieve at 1.1214 and 1.1183. But all short coverings to be done before ending the trade as this is just an intraday trading option.
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