Today we saw something very interesting. In the last few months there wasn't a sharp sell-off in EUR/USD so today's sharp fall grasp the attention of the traders. This movement signals that a correction of the recent rise has already started. In my opinion the key support here is 1.4014. If we see a fall below it, it will signal that the movement started from 1.1639 is currently retracing with minimum requirement 50 % retracement i.e. levels around 1.3000 in coming months. From the shorter term point of view we have an impulsive fall started today so I give a strategy to enter short on minor correction with a stop loss above 61.8 % retracement. If we see such a movement followed by a resuming of the fall, one should expect a new low below 1.4014 till the end of the month. A key resistance is 1.4280 and a rise above it will bring back the upside focus for a re-test of 1.4348 high.
Trading strategy: 09:48 EST; 13:48 GMT
Sell on recovery to 1.4210, stop loss - 1.4280, target - opened
Confidence level â€“ high
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.