CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

EUR/USD Technical Analysis: Ready for Down Trend Resumption?

4/2/2018, 10:49:47 AMTrading Strategies
EUR/USD Technical Analysis: Ready for Down Trend Resumption?

See our free guide to learn how you can build confidence in your EUR/USD trading strategy!

The Euro is testing key near-term support against the US Dollar, with a break opening the door for resumption of a two-month down trend. Price action has been defined by a choppy falling channel since a double top was carved out below the 1.26 figure in late January to mid-February.

A daily close below trend line support guiding the latest upswing – now at 1.2288 – clears the way for another challenge of the 38.2% Fibonacci retracement at 1.2173. Alternatively, a push above range resistance at 1.2446 would also breach the channel top and expose the 1.2537-8 area (38.2% Fib retracement, double top).

The second half of a short EUR/USD trade triggered at 1.2407 remains in play after partial profit was booked at the position’s first objective, looking to take advantage of downward trend resumption. A stop-loss will be activated on a daily close above 1.2446. Scale-in opportunities will be evaluated as they appear.