Despite having found a bid this week, EURUSD remains vulnerable while below 1.1217 on a daily closing basis. I mentioned this level at the end of last week as one that would likely attract selling pressure if tested.
And while today’s retest could present a favorable opportunity, in my opinion, the more promising trade would materialize with a close below 1.1060.
But that doesn’t mean it’s guaranteed to happen; nothing is when you’re a trader. Although I remain bearish on EURUSD, there is always the chance that this week’s bullish momentum retakes the 1.1217 handle, in which case a move back to 1.1360 isn’t out of the question.
At times like this, it’s best to remain patient and let the market make the first move. However, given the bearish momentum that has dictated price action since the May 3rd pin bar, I will only entertain selling opportunities from resistance.
Keep in mind that the earlier ECB announcement and presser may continue to influence today’s session, which is of course somewhat irrelevant for those who trade on a daily closing basis.
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