EURUSD: Reasons For Staying Short and Adding to Short Positions

Previously, I had posted a weekly short blog on EURUSD. It has fallen well, but not there is a huge bully candle in my way to the 1.03 or 1.02 target. All of my assessment tells me to stay short and target 1.02 or 1.03 for the month of February or March.

This BULLY candle is a reaction to the DXY (the dollar) pullback on the daily chart. With US data coming out tomorrow, it is my hope that resistance shall hold.

Here are some technical reasons why I will stay short or add to my current swing trade in EURUSD:

(1) 1.0619 and 1.0592 resistance
(2) 61.8% and 78.2% DOUBLE Fibonacci Confluence of Resistance at 1.0606 and 1.0592
(3) The 61.8% fib lines up with those those resistance areas that I have noted above
(4) The price is under the Daily 50 ma, which is providing resistance
(6) The price channel is proving that the price is spiraling down.
(7) MACD is bearish
(8) RSI is bearish
(9) StochsticsRSI reached into the overbought territory
(10) The Upward price channel has been broken.

Conclusion:
(1) There is no reason to panic out or cover like many probably have done. Many other technical traders has purchased the 61.8% support level (1.0520) from whence the bounce ensued.
(2) The market in EURUSD needed a retracement, and that is what we got.

See my weekly post on the EURUSD short trade.

Trade closed manually

Trade active:

Re-activated the short: