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Talking Points:
- EUR/USD Technical Strategy: Short at 1.0684
- Trump-induced Euro rally vs. US Dollar swiftly aborted
- Five-month rising trend support back in the cross-hairs
A Euro recovery following the test of five-month trend support was swiftly aborted, putting prices on the precipice of a major downturn once again. The single currency bounced as Donald Trump talked down the US Dollar but the move proved to be fleeting, as expected.
Rising trend line support is now at 1.0575. A break below that confirmed on a daily closing basis opens the door for a test the December 15 low at 1.0367. Alternatively, a reversal above 1.0682 – a noteworthy inflection point since late January – exposes downward-sloping resistance set from early May 2016, now at 1.0820.
The EUR/USD trade triggered at 1.0684 met its initial objective at 1.0605 and half of profits have been booked. The remainder of the position continues to be in play, looking to capture renewed weakness. The stop-loss has been adjusted to the breakeven level.
What do retail traders’ buy/sell decisions hint about the Euro trend? Find out here!
