27/12/16 Trade – EUR/USD

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My next trade is EUR/USD. on the monthly time frame this pair was in consolidation from early 2015 after a strong downtrend which started mid 2014. It has now broke the monthly support possibly continuing the down trend.Screen Shot 2016-12-27 at 12.51.27.png

On the daily chart there is also a clear downtrend and gives a better indication that the price has broken the monthly support level of 1.05296. The pair has made a slight retracement in price providing a good opportunity to enter the tread.Screen Shot 2016-12-27 at 13.33.45.png

Finally on the hourly chart we can see the retracement  which has consolidated producing a support level at 1.04690 which has been tested and failed to break three times with the sellers moving the price lower. Also the RSI is showing the price moving from overbought to oversold showing room for more downside movement.Screen Shot 2016-12-27 at 13.46.34.png

With the bearish trend and room for more downside movement i would put a short position on EUR/USD to reach the previous 1hr low with  a stop at the new 1hr resistance level.

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