The selloff in the U.S. dollar gained momentum Tuesday and led to overshooting prices in other counterparts. The British pound surged to a high of 1.2029 despite a deeply overbought situation. The euro, however refrained from testing the 1.05-level after breaking above 1.0370. Nonetheless, we saw sharp corrections in both pairs following price peaks.
We were able to catch some good profits in the midst of yesterday’s bullish momentum.
Below 1.19 we expect a steeper correction towards 1.16. However, given the market’s speculation about a dovish sentiment (despite continued warnings that inflation is too high!) we may experience some extended dollar weakness. Today, U.K. inflation will be released, so let’s see what is in store for sterling traders.
Our trading ideas for today 16/11/22:
Long @ 1.0410
Short @ 1.0360
Long @ 1.1910
Short @ 1.1830
Long @ 14370
Short @ 14320
Settings for all trades today: Entries from 8:00 am UTC, SL 25,
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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