The EURUSD moved up briefly as the U.K. session got underway. The idea today was to wait for it to roll over and trade with the trend lower.
We entered short with a stop loss of 7 pips for a potential 41 pips to our daily target at 1.0841. Speculation of Germany heading toward recession and further ECB easing is putting pressure on the pair.
The pair moved lower taking out its Asian session and yesterday’s lows. We tightened our profit stop and ended up having the trade closed as the pair retraced in advance of the U.S. session.
The pair may continue moving lower taking out 1.0800, 1.0750 and reach 1.0700 in the near term with continued USD strength. On counter trending days, I anticipate shorts to enter just above 1.0900.
Good luck with your trading!