EUR/USD Technical Analysis: Short Trade Hits First Target
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- EUR/USD Technical Strategy: Short at 1.1057
- Euro Resumes Descent vs. US Dollar After Hawkish FOMC Monetary Policy Announcement
- Short Position Hits First Target, Half of Profit Taken and Stop-Loss Adjusted to Breakeven
The Euro accelerated downward anew following a brief period of consolidation in the wake of a hawkish FOMC monetary policy announcement. Prices established a top following the formation of a bearish Dark Cloud Cover candlestick pattern, as expected, moving on to break rising trend line support set from mid-March.
Near-term support is now at 1.0906, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a challenge of the 50% level at 1.0847. Alternatively, a move back above the 23.6% Fib at 1.0978 – now recast as resistance – sees the next upside barrier at 1.1023, the 14.6% expansion.
We entered short EUR/USD at 1.1057. Prices have now hit our initial target and wehave taken profit on half of the position. The remainder of the trade will remain open to capture further downside momentum. The stop-loss has been adjusted to the breakeven level.
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