The Euro EUR/USD has been on a decline for the last little while, falling against almost every currency it is trading against. That coupled with some strength coming back into the dollar recently has made for another run at the bottom of the long term pennant that I wrote about a couple weeks back.
In my last article I pointed out the classic “Death Cross” technical signal the market was giving with the 50 day MA crossing below the 200. Since then the pair has been on a 200 pip decline, testing into the 1.3500 area early this morning.
The EUR/USD support.
1.3500 is a major area of support right now. A break through this area and I will be looking to target 1.3100 and 1.3000 as potential area’s for this move to take price. If support holds here then we could see price move back to the trend line before continuing down, or making a move back towards the 200 day MA back at 1.3600-1.3650 area. I am short the Eur/Usd from 1.3600 and adding to this position carefully with stops and targets in place at all times. From here I believe if we see price move down and close beneath the 1.3500 area in the next week or so, we will be in for a fantastic move with direction.
Trading the EUR/USD is high risk and traders would be best not to trade unless they have sufficient experience and understand risk management. This is not a suggestion to trade or advice. Trade the the EUR/USD at your own risk and get some training if you don’t know what you are doing.