EurUsd Short from trendline and SMA resistances

Yesterday's higher-than-expected U.S. CPI data caused the EUR/USD to break its short-term uptrend channel. After the initial decline, the price rose to test the broken channel at the 100 and 50-hour SMA levels. We expect the price, facing resistance from the channel and the 2 SMA levels, to retract to the 1.0865 level.

Comment:

The 30-Year Bond Auction showed a decrease in the interest rate compared to the previous rate, which led to a short-term decline in the dollar. The price rose to the 76.4% level, which is the final correction level of the recent downward movement, and encountered resistance from this level downwards.

The trade remains valid. If you haven't opened a trade before, you can enter a sell trade by placing your stop loss level above the 61.8% level of the main movement.

Comment:

The downward movement that began after the U.S. PPI data release is approaching its first target range of 1.0865-75. However, before reaching this level, the DXY hit its first major resistance, and the decline in EUR/USD is slowing down before reaching our first target.

We recommend closing a portion of your sell positions to take profits and suggest adding additional sell positions in case of a corrective rise in the price.

We will continue to monitor the price movement and share the ideal re-entry positions.

Trade closed: target reached:

The price has reached our target. Before further decline, we may see a corrective pullback.