Looks Like the euro is Turning Lower Again

Points to consider with this euro Forex article:

• The euro breaks through the counter-trend support. Suggests the longer-term bearish market is back in play.
• No trade from a risk to reward perspective.
• Trade strategy: Stand aside

The EUR/USD Forex market is resuming is longer-term downtrend. Please note the below daily MT 4 chart, and note the euro broke below a technical support level that guided this weak corrective bounce higher from the November low price point. This Forex market tuning higher, as expected, after failing to break below the key long term swing pivot at 1.05. However, the euro’s shallow recovery has run out of steam, once again.

Euro Technical Analysis

Let’s discuss today’s EUR/USD daily technical analysis. There is a congestion area marked by the support shelf in play since mid-March. This first downside barrier lines up at 1.0450 to 1.0520. A daily close below this first technical support area, challenges the next downside barrier that lines up at 1.0317. The alternative euro technical analysis, should this Forex market move higher, notes the first upside barrier lining up at 1.0610. A break above this first upside barrier, challenges the next technical resistance level that lines up at 1.0710.

Trade Strategy

Let’s now discuss today’s trade strategy with this Forex market. From a risk to reward perspective, a short EUR sale is a bit premature. Price action is too close to a near-term support level making this sort play a bit too early. Plus, there is pending economic calendar risk this week, as the US Federal Reserve is holding its monetary policy meeting and will release its decision later in the week. This will give us some US Dollar volatility. For now, I will opt to stand aside and remain flat in this particular Forex market waiting for a desired short EUR sale to come along.