Short Euro Sale in Play now Reaching First Target

EUR/USD (1.1051)

Points to consider with this euro Forex market:

• Euro sees is worst loss in a week as it breaks below trend line support.
• Short euro sale in play nears first target.
• Trade strategy: Short EUR @1.111

The EUR/USD Forex market suffered its largest one day loss in a week after breaking below the trend line support. The market had broken below this once before. The move lower broke the trend line guiding this particular Forex market’s post Brexit recovery. This now suggests the larger down play is back in action. Please refer to the below daily MT 4 chart for today’s technical analysis.

Euro Technical Analysis

Let’s discuss today’s daily EUR/USD technical analysis. There is near term support lining up at 1.1017. A break below this first downside barrier on a daily closing basis challenges the next downside level that lines up at 1.0875. Should this Forex market recover there is a cluster zone that runs from the aforementioned trend line resistance. This area runs from 1.1160 to 1.1192. A break above this first technical resistance level challenges the next upside barrier that lines up at 1.1392.

Trade Strategy

Let’s talk EUR/USD trade strategy. There is a short EUR sale at 1.1111 in play now. The first target is at 1.1017. Once this target is reached, I will book half the profits, move the stop loss to breakeven. The rest of the trade will be left open to capture more EUR weakness.