Looking for a short on EUR/USD if price returns to the trend line in the zone marked with the red box.
When taking into account the weekly time-frame we can see that our overall bias is bearish. Although the market has made lower highs in the last ten weeks or so it has yet to break out of the overhead downward trend line.
The bias is also bearish on the daily time frame. Although the market was able to make higher highs from September time price rejected the 1.2285 area where it met overhead key levels.
The 4hr tend line also coincides with a daily zone (blue shaded box) in which the market has previously seen a lot of price activity which gives added confluence to our trade.
Please note that this only a trade idea and all trades should only be made following your own research.
TP1 = 30 pips TP2= 1.1067 area (85 pips) TP3 = TBD depending on price reaction at TP2 area
Comment
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Trade entered at 1.114 - now keeping a close eye on the close of the current 4hr candle in order to see how price responds to the TL
Trade closed manually
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Trade closed at BE - trade no longer worth the risk
Although we could still get a price reaction from the purple zone, we did not get the expected reaction from the TL therefore the trade is now too high risk. There is also a lot of US news due up today which could add strength to the dollar.