EUR/USD trading strategy

Short term trade on this currency pair is the best that I can come up with. The Euro is still troubled by the Greek financial crisis but overall, the Euro zone's current situation is purely psychological and its fundamentals are still supporting a 1.60 EUR/USD. The monthly chart clearly shows two lower highs at 1.51 and 1.49 respectively, the next resistance level should be at the 1.45 mark. Going long on this pair when it reaches just below the 1.41 mark and aiming for a short term trade targeting an assumed resistance level at 1.45 would be reasonable to take advantage of the trading range.

Hourly and daily charts on the EUR/USD reveals identical descending channels with several lower lows indicating that resistance weakens everytime it is tested. The recent drop from 1.43 to 1.41 would give us a 1.4227 retracement target. If the drop is based from 1.4534 way back in July it still reveals a 1.42 retracement level which will complete the third leg of the descending channel's lower highs. Shorting the pair at 1.42 on its way down would be an ideal entry point.


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