EURUSD Short Trade Idea Forming At 1.0775?

Thurs 9th February 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• EURUSD
• USDJPY(Covered in Video)

EURUSD Short Trade Idea Forming At 1.0775?

In today’s forex strength video we identified that the Euro (EUR) is on the weak side of the tables and the United States Dollar (USD) is on the strong side.

Price found resistance at 1.1000 before the unexpected NFP numbers sent the price much lower.

The supporting trendline which formed back in October 2022 has been broken through.

Currently price is trading below this trendline and key horizontal resistance of 1.0775.

The slow build up below this level suggests a breakout opportunity could be forming.

Traders could wait for a false breakout of the level to form before looking to sell or wait for a breakout lower.

Sellers could target the 1.0600 support.

Technical Observations

• The EUR is W1 and USD is S2 on the day traders table.
• Price rejected major resistance at 1.1000.
• NFP rove the price lower below key support at 1.0775.
• Price has formed a slow retracement into the key support now turned resistance.
• A false break higher could offer sellers a trading opportunity.
• Alternatively, wait for a breakout lower.
• 1.0600 will be targets for traders short.