looking for short on EURUSD

20 Feb 2022

Right on top, we have the 1.14 handle coming into the picture and potentially offering resistance, but I think it might be a matter of time before we see this test. Whether or not this level will hold as resistance is an entirely different question at this point, but I would like to point out that there is a thick area of ​​supply all the way to the 1.15 level above, which means it may be difficult to break through through that level. in a long-term move. At this point, we have to see, especially since the region has produced a "double top". At the bottom, if we break below the 1.13 level, it could open a downside move to the 1.12 level with enough time. This area is still important from a long-term perspective in my opinion, so if we break below that level, the bottom in the EUR will go down, and we could go down a lot. Ultimately, I think this market is trying to turn itself around, but it's clear that it has faced a lot of headwinds above. In this environment, I think you have to worry about the possibility of random news popping up and crushing your trades. That is why I will be very careful with my trading position size and will not take a big risk at all. Ultimately, I think this market will eventually make a decision of some kind, but for now, we have to think about it more or less in the realm of a short-term trading environment, because nothing seems to be consistent for any significant amount of time based on algorithmic trading. .