Short EURUSD Setup Profits & More Trade Ideas

Having shared our trade idea on shorting the EURUSD currency pair last week, we'll continue to work on ideas revolving around shorting the euro as a general theme going forward. The past trading week saw rather unexpected downside in risk markets, as the U.S. dollar chopped around in a nasty range. Volatility was most pronounced in commodities and global equities.

We intend to sell rallies into our “key selling zone”, expecting former support to now hold as resistance.
— Business Of Finance, 10 November 2015

Recapping last week trade idea on the EURUSD, we said to expect a corrective advance into our "key selling zone" before prices get offered lower. That was exactly what happened in the latter part of the week where we saw broad based weakness in the U.S. dollar, pushing EURUSD up into our "key selling zone".

 Our technical trade idea for EURUSD panning out since we last put it fourth on 10 November. Price has retraced into our "key selling zone" on Thursday and Friday, closing bearish for Friday. We are bearish for the medium, and long term. Our short term bias is currently neutral to bearish. A daily close above our "key selling zone" will negate our bearish bias.

Our technical trade idea for EURUSD panning out since we last put it fourth on 10 November. Price has retraced into our "key selling zone" on Thursday and Friday, closing bearish for Friday. We are bearish for the medium, and long term. Our short term bias is currently neutral to bearish. A daily close above our "key selling zone" will negate our bearish bias.

We traded the weakness in the euro by going short EURNZD last week. Subscribers of our Premium Signals Service were notified on our short trade as it happened. We continue to look to sell strength in key euro crosses as the market generally expects the ECB to ease monetary policy in their December meeting.

We have plans to sidestep volatility and uncertainty in the greenback whilst still being exposed to other still developing macro-currency trends. Price action on EURNZD has been in an extended advance within a corrective channel. Shorting at the range highs will provide bears with good risk-to-reward trades.

 EURNZD has been a better alternative to the EURUSD for bears. The corrective pullback into our "key selling zone" has been cleaner, yielding more accurate entries for shorts. Price continues to trade within an intermediate uptrend channel, with the lower trendline holding as dynamic support. A daily close above 1.6950 would negate our bearish bias for the medium and long term. We expect bears to continue selling into weak rallies.

EURNZD has been a better alternative to the EURUSD for bears. The corrective pullback into our "key selling zone" has been cleaner, yielding more accurate entries for shorts. Price continues to trade within an intermediate uptrend channel, with the lower trendline holding as dynamic support. A daily close above 1.6950 would negate our bearish bias for the medium and long term. We expect bears to continue selling into weak rallies.