EUR/USD Tests Downward Trendline – Bearish Trade Setup

It's a big day for the European currency pairs as the European economy is due to release a series of low to medium impact events....


It’s a big day for European currency pairs as the European economy is due to release a series of low to medium impact events. These events are services PMI and have been driving a sharp movement in the market lately. Check out FX Leaders Daily Briefing, April 03 to read more about these events.

Let us swiftly move towards the trade setup now. We just spotted a bearish pattern on the EUR/USD chart. As you can see on the hourly chart, the pair is testing a bearish trendline resistance near $1.1227. A closing of bearish candle below this level will confirm a bearish setup.

Nevertheless, the US fundamentals are against this technical setup. In order to be more sure about the trade, we should wait for the European Services PMI figures which are releasing in an hour from now.

EUR/USD – Key Trading Levels
Support Resistance
1.1186 1.1218
1.1168 1.1234
1.1135 1.1267
Key Trading Level: 1.1201

EUR/USD Trade Plan
Before the news, the EUR/USD is likely to trade bearish $1.1230 with a stop above 1.1240 and a target of $1.1200 and $1.1180.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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