Points to consider with this euro Forex article:
- The euro has fallen below the key 1.08 level and is now at a fresh low for the year.
- Sitting on the sidelines for a more appropriate short EUR sale to come along.
- Trade strategy: Stand aside
The EUR/USD Forex market has now fallen below, with a daily close, the swing low at 1.08. The euro has now hit its lowest level in 2016 against the almighty Buck. There are some signs of positive RSI convergence with alludes to a possible recovery. This would be seen as corrective within the broader bearish tone and could open the door to a desirable short EUR sale.
Euro Technical Analysis
Let’s get into today’s euro technical analysis. A daily close below the first layer of support lining up at 1.0715 will open the doors for a test of congestion zone that runs from the December 15 low. This next layer of technical support comes in at 1.0518 to 1.0535. The alternative technical analysis for this Forex market, notes a congestion zone running from the October 15 low. A break above this first layer of resistance at 1.0825 to 1.0850 will challenge the next upside barrier that lines up at 1.0918.
Let’ talk about today’s trade strategy in this Forex market. There is no actionable trade setup for the time being. A sit and wait approach seems prudent as a corrective upswing would open the doors for a better positioned and timed short EUR sale. For this reason, I will opt to stand aside and remain flat in the EUR/USD Forex market for the time being.
Also, there are a number of Federal Reserve speakers on tap today during the US session. Should these speakers match the cautiously hawkish tone of the past official statements from the Fed, this will give more support to the US Dollar.