EUR/USD Technical Analysis: Short Trade Entered Above 1.09
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- EUR/USD Technical Strategy: Short at 1.0921
- Euro Struggling to Break Channel Top Resistance Despite Recent Risk Aversion
- Short Position Triggered Above 1.09 Figure, Looking for Down Trend Resumption
The Euro is struggling to rise against the US Dollar, with multiple attempts to build upside momentum cut short at channel top resistance. The recent standstill has materialized against a backdrop of risk aversion that might have been expected to drive the pair higher amid liquidation of EUR-funded carry trades.
A reversal below the horizontal pivot at 1.0819 initially exposes the 1.0686-1.0711 area (January 5 low, 38.2% Fibonacci expansion). Alternatively, a daily close above channel top resistance – now at 1.0913 – paves the way for a challenge of the December 15 high at 1.1060.
The single currency’s inability to find support in risk-off trade seems telling and we will now attempt to enter short EUR/USD, initially targeting 1.0819. A stop-loss will be activated on a daily close above 1.0940. We will take profit on half of the position and move the stop-loss to the breakeven level once the first objective is met.
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