How to trade the EURUSD given the key EURUSD events: German GDP, Greek IMF payment, US retail sales – our favorite simple short term news trade and how to play it
-There are a 3 potential short term EURUSD news trades today
-Why we prefer the Greek IMF repayment as the best simple short news trade for less experienced traders
-Basic strategy, fundamental and technical considerations for trade planning and execution
In yesterday’s article we focused on the EURUSD because it presented one of our favorite simple short term trade ideas suitable for less experienced traders – relatively easy to understand and execute.
We follow with another EURUSD post because today’s calendar presents another relatively straight-forward short term news trading opportunity. Feel free to use the strategy below for other EUR pairs, especially those with weak counter-currencies like the NZD or JPY).
News Trade Idea: Trading the Greek IMF Payment
The Greek €750 IMF Payment: The EUR hit Monday’s lows after the missed deadline for a “Greek reforms for EU cash” deal. Today the likely news trade opportunity is likely the news of this widely expected payment and short relief rally and/or reversal that follows. Simple trade strategies include:
1. Buy the EURUSD early today and with a sell target at one of our near term support levels noted below when either:
a. Your chosen resistance level is hit.
b. The EURUSD begins to reverse per your chosen indicators (for example, it dips below the 50 or 20 period EMA on the 4 hour chart below.
2. Sell the EURUSD when either:
a. The current short term rally begins reversing per your chosen indicators.
b. The pair hits your chosen resistance level from those presented below.
Our underlying assumption is that any relief rally will be short because the IMF repayment only buys Greece a few more weeks.
