EUR/USD Technical Analysis: Short Position Back in Play
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- EUR/USD Technical Strategy: Short at 1.1037
- Euro drops most in nearly a month, clears a path below 1.10 vs. US Dollar
- Short position triggered, looking for resumption of the long-term down trend
The Euro succumbed to renewed selling pressure after a brief pause having recoiled from trend line support-turned-resistance set from mid-March. Prices issued the largest drop in nearly a month against the US Dollar and now look poised to test below the 1.10 figure.
A daily close below the 38.2% Fibonacci expansion at 1.0919 opens the door for a test of the 50% level at 1.0777. Alternatively, a turn back above the 23.6% Fib at 1.1094 paves the way for a challenge of the 14.6% expansion at 1.1201.
Technical and risk/reward parameters look acceptable to attempt a short trade in line with our 2016 fundamental view. We will initially target 1.0919 and set a stop-loss triggered on a daily close above 1.1094. We will book profit on half of the trade and move the stop to breakeven once the first objective is reached.
Losing money trading the Euro? This might be why.
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