EUR/USD—Looks Like the Euro is Trying to Form a Bottom Above $1.04

EUR/USD (1.0522)

• Resistance Levels: 1.0622, 1.0795, 1.0970
• Support Levels: 1.0408, 1.04, 1.0060
• Trade Strategy: Stand Aside, Looking for a bounce higher to short the euro again

The euro is looking to stage a recovery against the US Dollar. This will give us a brief breather as the euro is marching to parity, and maybe lower. Please refer to the below daily MT4 chart and note the positive RSI divergence forming. This is hinting there could be a move higher as the EUR/USD finds a bottom above the 1.04 pivot.

Technically speaking, we need a daily close above the near term resistance at 1.0622. If this happens we will see a challenge of 1.0792. Should the EUR/USD resume its fall, we note technical support at 1.0408. A break below this level will challenge 1.04 then 1.0060.

My outlook for the euro is bearish. It has been bearish and will remain so for the foreseeable future. Today, the ECB is starting its massive QE program which will weaken the euro further. I am waiting for an opportunity to short the Eurozone currency. Till then I remain flat.