I’m very bearish on the Euro and ever since the Fed has started looking at rate hikes happening sooner rather than later, I have felt that the EUR/USD is set to head downward.

This week we have a bit of a potential curve ball, with the FOMC minutes due for release, in the coming days. That might impact the USD in the short term if something comes out that the market didn’t anticipate. Or at the same time, it might confirm the downtrend.

For that reason, I will still be looking for short opportunities in the EUR/USD, but for those with a longer-term timeframe in mind, it might be best to work an entry that is a little higher if we do see a jump. I like 1.1775 as a starting point, because if we pullback above 1.1800 then the chart starts to look a lot more neutral.

EUR/USD – 240 min Chart.