EUR/USD Technical Strategy: NET SHORT AT 1.2276
- Euro selloff pauses to digest after prices drop to 5-month low
- Shorter-term and structural down trends remain firmly intact
- Looking for opportunities to add to short EUR/USD exposure
See our quarterly Euro trading guide to learn what will drive prices through mid-year!
The Euro selloff paused for digestion after prices slid to the lowest level in five months but the down trend started in mid-April remains intact. The move appears to represent the first step in the resumption of a decade-long Euro decline against the US Dollar.
From here, a daily close below 1.1713 opens the door for a challenge of the 1.1467-1.1577 area, formerly a year-long range top now recast as support. Alternatively, a breach above falling trend line resistance at 1.1823 pave the way for a retest of the 1.1930-56 zone.
The short EUR/USD trade initiated at 1.2407 remains in play, with the cost basis now at 1.2276 after adding to exposure last week. Price action will be diligently monitored for opportunities to build the trade further will as attractive risk/reward parameters present themselves.
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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