Yesterday I issued a recommendation to short the EUR/USD using a Fibonacci retracement level. Upon the U.S. data releases at 8:30 AM EST this morning, the market saw a spike of participation triggering the sell.

There are no earth-shattering news items on the horizon for the remainder of the U.S. session. This should ensure that we receive unskewed price action.

Technicals

We are officially live. This is how the daily roadmap looks for the EUR/USD.

EUR/USD, Daily Chart

As the market develops today, there will be a few keys to watch:

• Price action around the 38% level needs to at least cluster, if not fully reject. Moving into the weekend, a close below the 1.1826 level is a very positive sign.

• Volatility is always a key. There are a few secondary economic items out this morning. If we see robust participation against the position, I will be looking to tighten the stop. Stay tuned.

Bottom Line: Moving into the weekend, this 38% Fibonacci short is setting up a pretty good position trade to the bear. If you want to get in on this trade, review the game plan here.

Be sure to trade within your means, and watch that risk management!