I’m going to short the EURUSD

euro

A few weeks back I analyzed the EURUSD… back then it was trading near a long term level and talked about two possible scenarios:

  • Bullish condition, if it broke through the upper resistance level
  • Bearish condition, if it broke through the lower support level

I favored the later one, specially because we had more than 500 pips before we reach the next LT level…

And you know what… that’s exactly what happened!

The EURUSD broke through the bottom of the range, triggering a bearish condition. And now, I’m going to look for short opportunities.

EURUSD Long Term Analysis

Let me show you how the daily chart looks like today:

EURUSD 1D

It broke through that support level and it is now likely to continue its way down until it reaches its next LT support level around 1.2813.

So we still got more than 370 pips before we hit the next LT level.

Now I need to prepare our entry, and to do that, we need to look at the short term charts.

EURUSD Short Term Analysis

Most of the time I take my trades off the hourly chart… but sometimes we need to adapt.

If we look at the 1H chart, you’ll see a tiny range, very difficult to read… But if you look at the 15M chart instead, you’ll see a cry well defined range.

Here is how that range looks like:

EURUSD 15M

Ok, so we’ve got a bearish condition, a clear range on the short term charts… that means that we can trade a breakout of the range…

Here are the details of my pending order:

Sell stop entry: 1.3167 – spread
Stop Loss: 1.3200
Take Profit: open

Your Turn

Are you currently trading the EURUSD?

Are you going to taje this signal?

What other currency pairs are you monitoring?

EURUSD, forex, signal


Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .