Price Action – Sell Setup on Euro Corrective Pullback | Apr. 3rd

The Euro downtrend that I’ve been talking about is still in play as we speak. But as discussed in the weekly market commentary, the short term bullish underpinning has been playing out with the pair slightly higher on the week. If you look at the overall price action on the daily chart, the bounce off the yearly lows is corrective in nature. Corrective pullbacks are common in downtrends, and usually end with an impulsive with trend move.

Thus, I’ll look for a sell setup towards the daily 20ema, currently clocking in at 1.2921, and possibly to add some more shorts around 1.2966 to rejoin the downtrend. Downside targets will now be 1.2750 and 1.2675. Only a break and close above 1.3050 eliminates my bearish bias on the pair.

impulsive price action eurusd euro $eur downtrend

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Haji warithu

    I was looking at the weekly chart. and Found out that the 1.2750 bounce looked like a turning point of the start of a Bull trend… could the move be impulsive during the likes of ECB statement and Feds ?

    • Hello Haji,

      I suspected the bullish underpinnings which would dominate this week as I have been writing about them. This played out as expected, and the Draghi comments changed things a big. So will wait for a higher retrace before getting short again.

      Kind Regards,
      Chris Capre