EUR/USD – Waiting to Enter another Short Euro Trade

Some talking points to consider in this Forex market:

• The EUR/USD is trying to correct higher after finding support below the 1.09 pivot.
• Bearish tone remains intact. Waiting on confirmation to re-enter an new short euro trade
• Trade strategy: Stand aside

The EUR/USD Forex market is attempting a very cautious, mild rally after finding support below the 1.09 pivot. However, the down-trend that started with the bearish dark cloud cover candlestick, which confirmed a top, remains in play. Waiting on confirmation to re-enter another short euro trade.

Technical Analysis

Let’s look at today’s EUR/USD daily technical analysis. There is short term support lining up at 1.0985. A daily close below this technical level challenges the October 28 low at 1.0898. The alternative EUR/USD technical analysis notes technical resistance lining up at 1.1037. Should the euro recover and move above this technical level, the next upside barrier is at the falling trend line. This technical resistance level lines up at 1.1124 for today.

Trade Strategy

Now, let’s look at the daily EUR/USD trade strategy for today. I had a short euro trade at 1.1058. I took 50 percent of the profits of this position before the stop loss activated at breakeven, shutting this short sale down. This came after the EUR/USD corrected higher. I will now remain on the side lines monitoring my charts for another opportunity to go short euro once again in line with my overall bearish EUR outlook. For today, I am flat in the EUR/USD Forex market.