Euro trading quietly near the one Year Low

Points to consider in this Euro Forex article:

• The selloff with the euro has stalled out near the one year low below the key pivot at 1.05.
• There is positive RSI forming, but not confirmed. This could hint at ebbing selling pressure.
• Trade strategy: Short EUR sale at 1.0705

The EUR/USD Forex market has paused its selloff above the key pivot at 1.05. This Forex market is currently consolidating in a tight trading range. There is positive RSI convergence, noted on the below daily MT 4 chart. This could hint at a corrective bounce, however nothing has been confirmed as short euro sale remains open for now.

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 challenges the next technical resistance level that lines up at 1.0825, once again. The alternative euro technical analysis, notes a congestion area that runs from December 15 low. This first downside barrier lines up at 1.0518 to 1.0535. The next downside barrier, should the first area be breached, lines up at 1.0352.

Trade Strategy

Let’s discuss today’s trade strategy in this Forex market. There is a short EUR sale in play at 1.0705. The first target has been achieved and half the profits of this trade have been booked. The stop loss has also been trailed to break even. The remained of this short EUR sale will remain open to take advantage of any further weakness with the EUR currency. The over outlook for this Forex market remains to the downside with the quantitative easing in play from the ECB. There is also higher bond yields and a possible rate hike from the Fed supporting the US Dollar.