Possible Top in Play in the Euro Dollar Market

Points to consider in this Euro Forex market:

• Euro breaks down below the 1.16 pivot level as a six day winning streak comes to an end.
• There is a shooting star candlestick trying to form. No confirmation yet.
• Trade strategy: Stand aside

The EUR/USD Forex market hit a wall under the 1.16 pivot as I ended a six day winning streak. There is the appearance of a possible shooting star candlestick. Should this be confirmed, this will indicate more losses in store for the euro currency in line with the overall bearish dominant trend for this Forex market.

Euro Technical Analysis

Let’s discuss today’s daily EUR/USD technical analysis. There is near term support lining up at the first downside barrier at 1.1460. A daily close below this technical level challenges the next downside barrier at 1.1368. The alternative euro analysis, should the EUR move higher, notes technical resistance lining up at 1.1538. A break above this first upside barrier challenges the next technical resistance level lining up at 1.1610.

Trade Strategy

The overall trend in this Forex market remains bearish in line with the fundament euro outlook for 2016. The appearance of a shooting star candlestick is not significant enough by itself without further confirmation of a downturn. With this in mind, I will opt to stand aside until a better short EUR sale comes along. For now, I remain flat in the EUR/USD Forex market.