EUR/USD—Looking to Short the Euro on any Recovery or Bounce Higher

EUR/USD (1.0604)

• Resistance Levels: 1.0622, 1.0795, 1.0970
• Support Levels: 1.0407, 1.0060, 0.9712
• Trade Strategy: Stand aside waiting for a short euro sale

The charts in the EUR/USD are starting to get interesting. Let’s look at the below daily MT 4 chart. Note the Piercing Line and subsequent bounce higher. Also note the positive divergence in the RSI. These are all signs the euro is getting ready to correct higher.

Note near term resistance at 1.0622. A break above this level will challenge the next technical resistance level at 1.0795. Should the EUR/USD move lower, note support at 1.0407. A close below this level will challenge the technical support at 1.0060. Then it’s a run on parity and lower.

My medium to long term outlook on the euro has not changed. With the QE program and dovish monetary policy in the EU, I will treat any euro bounce higher as a mere correction opening the doors to a better short euro sale. Till then I am watching the charts for a more actionable trade opportunity.