EURUSD: Short selling strategy to 1.0800

Hello dear traders, what do you think about EURUSD today? I'm RalphBenjaminTrading, nice to meet you again, for this weekend's discussion and strategy!

Overall, EURUSD experienced significant volatility yesterday with the price falling above the 1.0900 level. It is currently trading at a new low of 1.0837, after hitting 1.0868, marking a 0.2% decline on the day. So what is the cause of this plunge of the Euro?

On impact news: The major pair's decline was supported by a firmer US Dollar and higher US Treasury yields. Traders await Friday's German IFO Business Climate ahead of Fed Chairman Powell.

On the fresh outlook for EURUSD: on the 4H chart, EUR/USD is currently receiving strong support around 1.0834. A break below this level will result in a significant price decline, while a sustainment will result in an increase in price. It is expected that the price will retest the Fibo levels of 0.618 i.e. 1.08735 or 0.5 i.e. 1.08867 with a bounce. If the price quickly corrects back towards the support level, the likelihood of a breakout increases. Fundamentally and technically, EUR/USD is showing weakness after yesterday's news we can sell the same scenario based on the chart setup.

Trade active

Trade closed: target reached:

Price did not retest the resistance level. Temporary goal achieved

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