Potential 200 Pip Trade

Will 1.16 hold or will bears push price down to 1.14? Both are key phycological levels which means they are very strong and have both been used as key support and resistance levels in the past, this is also the weekly timeframe and as we know levels on the higher timeframes are stronger.

If we end the week below 1.16 then a 200 pip drop is expected, although the USD is very strong this week we have just today had weaker than expected unemployment figures which is bad for the strength of the USD, this might get cancelled out though by better than expected GDP figures.

Next week we also have NFP and the question over raising the debt ceiling in the US, if this is not raised then expect USD to sink.

So i am short in this trade but keeping a close eye on it.

If you have any questions please just ask.