Still Staying Bearish with the Euro

EUR/USD (1.2462)

The euro is still trading below the key technical level at 1.25. Please refer to the above daily MT 4 chart. This weakness was confirmed after piercing line candlestick failed to confirm leaving the EUR/USD without a bullish reversal signal. Right now we are stuck in a short term down trend. We are eyeing the low near 1.2360 as the next support target. A daily close below this level will challenge 1.2250. This is also a low set back in August 2012. In order to negate our bearish sentiment at this point, we need a daily close back above 1.25. If this happens we would look at 1.2850.

Here is my trading strategy today, let’s look at the below 4 hour MT 4 chart. Here we note the formation of a shooting star just below 1.2485. If this is confirmed with a daily close lower, we will continue the downtrend. With that said, the next support target is near 1.2360, as we mentioned above. Thanks to the bearish tone, I am remaining short. I have adjusted my stop loss to the technical level at 1.25 and am now looking to target 1.2280.

As always, trading strategies are for educational purposes and do not constitute trading advice.