The Euro is Falling Again against the USD

Points to consider in this euro Forex market:

• Euro falls lower after forming a bearish engulfing candlestick pattern.
• From a technical perspective, there is no short EUR trade at this time.
• Trade strategy: Stand aside

The EUR/USD Forex market is turning lower again. Not surprising after the strong non-farm payroll (NFP) report on Friday. It would seem the euro found support just above 1.12 and formed a bearish engulfing candlestick in this area. This indicates a possible top forming.

Euro Technical Analysis

Let’s talk about today’s EUR/USD daily technical analysis. There is near term support lining up at the current price level at 1.1068. A daily close below this first downside barrier challenges the next technical support barrier that lines up at 1.0965. The alternative technical analysis in this Forex market, notes an upside barrier lining up at 1.1130. A break above challenges the next upside barrier at the August 2 high. This technical resistance level is at 1.1235.

Trade Strategy

Let’s talk trade strategy in this particular Forex market. From a risk to reward, technical analysis, standpoint, there is no short EUR sale now. Price action is right up against a technical support level making that move a bit premature. There is also a very narrow average trading range (ATR) to consider. Putting both of these together, I will opt to stand aside and wait for a better trade opportunity to come along. Preferably a short EUR sale in line with my bearish 2016 euro forecast. For now, I am flat in this Forex market.