EUR/USD Technical Analysis: Short Trade Triggered Sub-1.11
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- EUR/USD Technical Strategy: Short at 1.1057
- Break of 7-Month Trend Line Support Hints Long-Term Euro Down Trend Resuming
- Short Trade Triggered, Initially Targeting Move Back Below 1.10 Figure vs. US Dollar
The Euro looks to be resuming its long-term down trend against the US Dollar after a break of support marked by a rising trend line set from mid-March. Prices topped and turned lower as expected after putting in a bearish Dark Cloud Cover candlestick pattern.
From here, a daily close below the October 23 low at 1.0996 opens the door for a test of double bottom support marked by the May 27 bottom at 1.0818. Alternatively, a move back above the trend line and horizontal support-turned-resistance at 1.1118 clears the way for a challenge of the 38.2% Fibonacci retracement at 1.1187.
We will now enter short, initially targeting 1.0996. A stop-loss will be activated on a daily close above 1.1118. We will take profit on half of the position and trail the stop-loss to the breakevenlevel once the first objective is reached.
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