After a failed attempt at a rebound this week, the EURUSD is once again trading below the 1.0635 handle. We’ve discussed this level several times recently, and it had also served as support over the last three sessions.
I’ve been stalking the EURUSD since last week’s false break of 1.0825. I missed the March 29th retest of the level as new resistance and this week never managed to set up a short from 1.0712.
With that said, I have sold the Euro elsewhere such as yesterday’s EURCAD short.
But today’s weakness, especially the aftermath of U.S. non-farm payroll, could set up an opportunity for next week. The pair has so far closed below 1.0635 on a 4-hour closing basis, but I’ll wait to see how the day and week close before considering an entry.
All of this comes after last week’s 260 pip bearish engulfing candle. I’ve seen quite a bit of bullish EURUSD talk lately, but from a purely technical standpoint, I see no reason to take a bullish stance here.
A daily and weekly close below 1.0635 could set up a selling opportunity for next week. A move lower would likely encounter buying pressure in the 1.0520 area.
Note that there is also a trend line from the current 2017 low that could become a factor. At the moment, that level comes in near 1.0590 so waiting for a break here before entering may be the best approach.
Want to see how we are trading this setup? Click here to get lifetime access.
