Points to consider in this Euro Forex article:
- Euro digests recent sharp losses after hitting am eight month low.
- There could be a recovery as the RSI hints at a rebound.
- Trade strategy: Still short at 1.1208.
The EUR/USD Forex market has paused to consolidate some large losses near 1.09. This Forex market has hit its lowest level in nearly eight months. There are some signs of a recovery with the RSI indicator hinting at a euro rebound. However, these gains could be merely corrective with the larger bearish model in place since 1.14 still in play.
Euro Technical Analysis
Let’s discuss today’s daily euro technical analysis. A daily close above a cluster zone that runs to the July 25 low will challenge the next technical resistance level that lines up at 1.1014. The cluster zone runs from 1.0930 to 1.0951. The alternative technical analysis, notes the first downside barrier lining up at 1.0828. A break below this level challenges the next downside barrier lining up at 1.0661.
Let’s talk EUR/USD trade strategy. I remain short at 1.1208. I have booked half the profits, since the first object was met and I am remaining the rest of this short EUR sale open to, hopefully, capture any further EUR weakness. The stop-loss has been trailed to breakeven, which is at 1.1208.
With the European Central Bank running out of options in regards to purchasing debt to support its current quantitative easing program, sooner or later they will need to make a move.