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.
Make sure to also check out my most recent article Forex Trading, Ted Williams & The Little Details Pt. 2