Trade idea: EURUSD Bearish Trend Resumes - Target 1.1700!
The EURUSD currency pair today broke the 1.1800 support level in a continuation move of the prior downtrend that started in mid-April.
EURUSD touched the 1.2000 level on Monday and sharply fell soon after. Now that 1.1800 is also broken and the bearish momentum appears solid, the bears should have little trouble to drive EURUSD to 1.1700 in the coming days, hence looking for short opportunities is the best direction to bet in EURUSD at the moment.
The slowdown in EU economic data and the improvement in US data continues the be behind the EURUSD decline. However, chances are that this theme won't last for too long and EURUSD is likely to find a bottom in the next weeks as a result. The 1.1600 - 1.1500 support area looks like the most probable technical area for that to happen.
In the meantime, we can look to enter short in order to capitalize on the overall bearish sentiment that is in play at the moment.
Look to enter short around current levels (1.1800) or possibly higher, either at a good technical resistance level or intraday bearish patterns and target the support at 1.1700 and maybe even toward 1.1600.