Euro Says Goodbye to this Year’s gains against the USD

Points to consider in this euro Forex article:

• The euro has now erased all gains in this Forex market for this year and is now below 1.06.
• The RSI indicator indicates a corrective bounce could be ahead.
• Trade strategy Short EUR sale at 1.07 in play

The EUR/USD Forex market has now erased and said goodbye to all of its gains this fiscal year. Price action has seen the euro fall back below 1.06 and is seeing lows it saw in December 2015. There are preliminary indications of a corrective bounce higher, starting to emerge with the RSI indicator. Nothing is confirmed as of yet but bearish momentum could be waning. Please refer to the below daily MT 4 chart for today’s daily technical analysis.

Euro Technical Analysis

Let’s look at today’s daily EUR/USD technical analysis. There is near term resistance lining up at 1.0715. A daily close above this first upside barrier will see a challenge of the next upside barrier that lines up at a cluster zone beginning at the October 25 low. This resistance area runs from 1.0825 to 1.0850.

The alternative euro technical analysis, should this market move lower, notes a support cluster zone starting at the December 2015 low. This area runs from 1.0518 to 1.0535. A break below this first downside barrier challenges the next downside barrier that lines up at 1.0352.

Trade Strategy

Let’s talk about the trade strategy for this Forex market. I still have an open short EUR sale at 1.07. I have already hit the first target at 1.0535 and booked half the profit. The stop loss has been moved to breakeven and the rest of this short sale will remain open to, hopefully, capture more weakness in this market.