Forex Marketz Daily Forex News – Fully Markets Update
Points to consider in this euro Forex market:
- The euro has broken back below a monthly channel resistance.
- Dominant trend in this market is still bearish. Euro gains are seen as corrective at this time.
- Trade strategy: Short euro at 0.7877
The EUR/GBP Forex market has turned back lower as sellers are eyeing support levels. This recent downturn came after a bearish shooting star candlestick formed. Looking at the chart, you see the formation of a possible double top now in play. This has yet to be confirmed but hints at further euro weakness over the days to come.
Euro Technical Analysis
Let’s discuss today’s daily EUR/GBP technical analysis before talking about trade strategy. There is near term support lining up at 0.7968. A daily close below this first downside barrier challenges the next technical support barrier lining up at 0.7912. The alternative EUR technical analysis, should this Forex market recover, notes a former horizontal support pivot, now resistance as the first upside barrier. This technical level is lining up at 0.7927. A break above this first upside barrier challenges the technical level and long term trend line resistance level lining up at 0.8007.
Trade Strategy
Let’s discuss today’s EUR/GBP trade strategy. From a risk to reward perspective, this Forex market was beginning its long term down trend. This allowed me to place a short EUR trade that went active at 0.7877. The first target of this short sale is at the April 26 low lining up at 0.7734. I have placed a stop loss, to activate on a daily closing basis, at the May 4 high. This level is at 0.7948. Once I book half the profits, after meeting the first objective, I will trail the stop loss to break even leaving the remainder of this short EUR sale open to capture further weakness in this Forex market.
