Scanning over the charts this morning and I’m again seeing a possible opportunity to take EURUSD short.
EURUSD – Daily
We have a candle close just under the 1.6566 area which has provided previous support / resistance when you look into the intra day charts. Now I’m big bear for this pair and have been waiting a few months for this to develop as I have said in a previous post. As we know, markets do not move in straight lines and I’m looking to take advantage of any pullback to value where I can enter into another short position. A slightly aggressive move however it supports my overall thesis around dollar strength.
EURUSD – 1hr
Looking at the 1hr, we can see price reaching the 1.16566 level and has failed to blow by on 2 occasions. It’s come up to it again and I’m taking this short based on this bearish triple top pattern with entry as close to the 1.6566 level as possible at market open. Now we have some crucial US data releasing this week and I am acutely aware of the risks this may bring into the markets. However this may be the next catalyst we need to send the Euro another leg down and confirm the bearish patterns I’ve been outlining with a path towards 1.135.
Following release of US data the EURUSD is still range bound between 1.161 and 1.1656. I have since exited my position at the 1.162 level netting a decent 2:41 risk vs reward gain. This market at the moment looks to be playing in this range and I will take advantage of this via short term trades throughout the day.
EURUSD – 1hr