The EUR/USD is moving higher towards its previously broken trend line which could allow for a potential short setup.
Following the break of the January to May trend line the EUR/USD is quickly recovering towards the trend line which may now act as a resistance level. Should the EUR/USD move above the initial support at 1.4750 off the late April/early May lows, a potential opportunity to short the pair set up at the trend line at rate of approximately 1.4830. A protective stop should be used, whether it is a tight stop that trails the trend line or placed above the May high at 1.4940.
To the downside, support comes in at Monday’s low at 1.4550 followed by Friday’s low of 1.4450. Should a full-fledged reversal occur, additional supports are found at 1.4300 and the May low at 1.3970.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
