EURUSD sell signal: riding with the trend

The euro has been dropping against the US dollar for the last couple of months. The price is making lower lows and will possibly continue so in the coming months.

Price is making a pull-back after it dropped to last November’s low and is currently making a pull-back. I am expecting the price will possibly retrace to 1.06589 resistance level and 0.786 Fibonacci level before dropping to new lows.

The current rally of the Euro against the US dollar is mainly due to the bearish correction of the US dollar. As soon the US dollar will resume its rally Euro will again slide down.

Fundamentally the euro is weak due to the bleak economic forecast of the European countries. Moreover, the Euro region is struggling under the weight of higher energy prices, a surge in borrowing costs and waning demand in export markets like China, which is causing the depreciation of the euro against the US dollar.

I will be closely watching this trade while Non-farming payroll data is being published this coming Friday. If data comes above expectations we might witness another sharp decline in the euro against the US dollar, and a sharp upside rally in case of negative data though short-lived.

In the long run, the euro will possibly continue its bearish trend against the US dollar.

• The euro will possibly continue its bearish trend and will drop to last November’s low of 1.02369.  
• The entry and stoploss prices have been set at secure levels after multiple confirmations.
• Multiple take-profit levels have been added to secure profit along the way.
• This trend continuation trade with an ROI of 1:3.5.
• Good luck!

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