Despite best efforts to rally this week, EURUSD is coming under fire yet again in what has become a slow grind lower since the July 5th retest of former channel support.
If you read my most recent weekly forecast, you know that I’ve been keeping a close eye on the 1.0940 handle. However, based on yesterday’s session, it appears that the level of interest is closer to 1.0950.
While I’m not usually an advocate of trading the 1-hour chart, it does occasionally offer up some great opportunities. One such opportunity just materialized with the 1-hour close below channel support that extends from yesterday’s low at 1.0950.
A successful retest of the level as new resistance could make for a favorable short setup. For me, the 1.0950 level may offer a chance to add to an existing short position on a close below it rather than a final profit target.
Of course, the way you approach and manage this trade idea is entirely up to you.
Keep in mind that tomorrow’s FOMC statement at 2 pm EST could shake things up for the EURUSD and any other US dollar pairing.
Depending on what the single currency does between now and then will likely influence the decision of whether to hold or fold any USD exposure ahead of the event.
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