Forex Update: The EUR/USD and GBP/USD trade today

 TRADING ALERT 

Quick currency trading update: a short position for the EUR/USD. Today, a lot of things are going on that may influence this pair; ECB interest rate decision and monetary policy update. For the USD, a QoQ (personal consumption, measures price changes in consumer goods) (Q3). From a technical standpoint, the stochastics are in 'overbought' territory.

Click chart for larger version.

Historically, and from experience, the EUR/USD has the tendency to retreat from its psychological level (which is 1.36 at this time of writing), and usually by quite an amount of pips. The already highly overbought pair is likely to drop a cent (if not more) after news is released. My entry: short around 1.3590/1.3600 SL: 1.3620 with a target of 1.3450

A similar scenario seems to unfold with the GBP/USD;

Click chart for a larger version.

Also here the stochastic is in overbought territory. In my opinion, anything above 1.60 is too overbought and the increase in value has to do with the positive economic news coming from Great Britain recently. This rally may have caused the pair to be a little overbought. My entry: short 1.6380, SL: 1.6430 with a target of 1.6200.

-Happy trading!
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