Euro Looks to test 1.12 and Lower

Points to consider in this euro Forex market:

• Euro looks capable and susceptible to more losses after seeing its largest intraday drop in over 2 months.
• Short trade now triggered as sellers look to challenge 1.12 and lower.
• Trade strategy: Short euro at 1.1318

The EUR/USD Forex market is now susceptible to more losses after seeing its largest intraday drop in over 2 months. Price action put in a shooting star candlestick then turned lower. This bearish chart formation formed below the handle lining up at 1.16.

Euro Technical Analysis

Let’s discuss today’s EUR/USD daily technical analysis before talking trade strategy. There is a cluster zone running to the April 25 low as the first layer of support. This area runs from 1.119 to 1.1215. A daily close below his first downside barrier challenges the next technical support lining up at 1.1068. The alternative euro analysis, should this market recover, notes the first upside barrier at 1.1358. A break above this first upside barrier challenges the next technical resistance level lining up at 1.1455.

Trade Strategy

Let’s talk trade strategy with the EUR/USD Forex market for today. The risk to reward analysis, also known as technical analysis, supports a short EUR sale at this time. I have entered a short EUR sale at 1.1318. My first target lines up at 1.1215. I have put the initial stop loss to activate on a daily close back above the May 10 low at 1.1369. Once the first objective is met, I will book half my profits and leave the trade open to capture further weakness in this Forex market. However, I will move the stop loss, at that point, to breakeven.