FOREX Chart Of The Day: EURUSD Too Early To Short?

In this video, we take a look at #EURUSD and see if the price action suggests it is too early to short the market?

Today, we’re going to take a look at EUR/USD to give an update on what’s been happening because we saw a battle between the buyers and sellers of the US Dollar.

Weekly timeframe

In the weekly timeframe, the price is still trading within last week’s range. We would have wanted to see the price break instead.

The recent price action on EUR/USD has been mixed lately due to the poor data out of the US. This, with the Non-Farm Payrolls coming out this Friday, made it a tricky market to judge. Looking at the weekly timeframe, the price is trading within last week’s price action. If the USD strengthens, we would want to see the weekly low break.

I’m expecting a bit of USD strength to enter the markets due to the strength meter analysis. So, I’m looking for the price to break to the downside and the weekly low.

However, the price is just battling back and forth and we also saw weakness come in yesterday.

There was a sign of the price moving downwards. We saw the break of yesterday’s low price sinking down to the key level where we talked about it finding support. We started to see buyers step back in, which isn’t great for our bias to the downside on EUR/USD.

The daily timeframe highlights the battle between buyers and sellers. The price continues to bounce from the recent support. If the NFP data shows positives in the US economy, we can expect the USD strength to break out of this level. Until that happens, it is best to be patient.

Four-hour timeframe

There could still be decent opportunities within the four-hour timeframe. The price is starting to head to the downside. We recently saw the price retest the double top structure, found resistance, broke to the downside, and now, we could come back and retest this structure again for further downside.

The four-hour timeframe shows that the market respected key support and resistance levels. With the price rejecting the recent double top neckline, we could look for a similar pattern to form at the recent highs.

I need to see another double top pattern or something on EUR/USD to suggest that we’re going to see sellers continue to enter the market. Obviously, there’s a huge demand at the low levels.

We only want to be buying the USD on a very short-term basis. Take profits as the price moves down. If we break through the lows, we can look for the market to target the weekly lows.

At the moment, the price is still within last week’s range. However, there are some signs that sellers are coming back to the market.

If you’d like to try trading the EUR/USD currency pair, you can start with at least $100 with a live account at Blueberry Markets.

About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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