Reasoning behind the short dollar trade is in the linked chart below.
The weekly chart looks like it's shaping a bottom; I might be subjective, I rarely trade in the direction of a breakout.
The daily chart has one of the best patterns I use for timing in a trade - Friday-Monday momentum lost. On Friday, the picture was very negative for the Euro, and very positive for the Dollar. Traders went home, thought over the weekend, and on Monday, despite any news, decided to cover Euro shorts/close Dollar longs. This is a typical pattern before a main even, last time it happened on EURUSD was on 16/03/2015, 2 days before the famous word 'patient' was dropped from the FOMC statement. The result was a rally of over 10%.
I am building a short Dollar position, with a soft stop, as always. In order to get bearish on EURUSD, I would have to see a massive close below this multi year support area around 1.05.
The weekly chart looks like it's shaping a bottom; I might be subjective, I rarely trade in the direction of a breakout.
The daily chart has one of the best patterns I use for timing in a trade - Friday-Monday momentum lost. On Friday, the picture was very negative for the Euro, and very positive for the Dollar. Traders went home, thought over the weekend, and on Monday, despite any news, decided to cover Euro shorts/close Dollar longs. This is a typical pattern before a main even, last time it happened on EURUSD was on 16/03/2015, 2 days before the famous word 'patient' was dropped from the FOMC statement. The result was a rally of over 10%.
I am building a short Dollar position, with a soft stop, as always. In order to get bearish on EURUSD, I would have to see a massive close below this multi year support area around 1.05.
