Is Support in the EUR/USD About to Crack?
There has been more pain for Euro bulls so far this week. And again it has been the USD that has been causing the problems.
The rally in the Greenback continued even as US President Donald Trump decided to end the nuclear deal with Iran. And markets have reacted accordingly.
It’s been a short and sharp decline for the EUR/USD. In less than a month we’ve fallen from 1.2400, to where we sit today. Which is currently at 1.18 handle. And even that is looking shaky.
Our support levels in the EUR/USD have been feeling some heat. That’s not a bad thing as I personally like to use them as targets to exit trades. Certainly when we have such a strong trend like we do at the moment.
The biggest challenge is actually trying to find pullbacks as we can often miss moves waiting for a good price. But that’s the nature of trading to some extent.
My trading plan is to wait for a break of 1.1850. If we can push through I would be interested in shorting an initial pullback to just below, that support turned resistance.
That way we can target 1.1740 to the downside, which I think is the next swing low area.
If we risk to 1.1900 then that makes me think we have a decent risk-reward in this one.
The EUR/USD is a tough trade. It’s the most liquid and popular pair out there and can be a real headache. But the trend is strong.
EUR/USD – 240 min Chart.