EUR/USD (Intraday Forecast)
Sell if EUR/USD bounces to 1.2210, stop at 1.2260, target at 1.2160
The EUR/USD finally broke below key support at 1.2250 yesterday, leading to a quick drop through the 1.2200 round handle overnight. Most analysts are now watching for a move down to previous support (from 2 years ago) at 1.2150. Though targeting that level from current rates would not offer a substantial potential profit, a brief bounce could provide the ideal entry into a sell trade.
Specifically, traders could set a limit sell order at 1.2210 (just below a bearish trend line on the 1hr chart, not shown), with a stop at 1.2260 (above previous-support-turned-resistance at 1.2250) and a target at 1.2160 (just ahead of the widely watched 1.2150 floor).
This short-term trade idea would be invalidated if not triggered by the end of today’s North American trading session (17:00 Eastern, 21:00 GMT).