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Forex: Ideas You Can Trade - EURUSD Hits 1.0710, Parity Approaching

 

EURUSD: Ongoing Bearish Trend Brings Pair Towards Fresh Session Low of 1.0710, as Downward Trajectory Points Towards Parity

The medium term daily candle chart below shows the price history of the Euro currency (EUR) versus the United States Dollar (USD). This currency pair is known as EURUSD, and is trading near 1.0715, and near fresh session lows of 1.0710 - reached minutes ago today (around time of publication).

Last time EURUSD was reviewed in Ideas You Can Trade last week, 1.1200 had been lost and was followed by a sharp drop towards 1.1000. Since then the bearish trend has steadily pushed lower following last Friday's drop, an even lower-low reached today as 1.0700 is within very close range. 

A medium term bearish support line (see magenta colored line below on chart) points towards 1.0475 in the very short term and towards 1.0000 or parity by Mid-April - if the slope of the current trend continues. 

If a recovery starts to develop, then 1.1400 could be revisited and could delay the above-mentioned parity scenario by perhaps May-June - unless a recovery is sustained, although a bottom doesn't seem to exist near current prices. 

Below are examples of how to trade a bearish continuation or a bullish reversal:

1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.0929 with a Limit to take profit @ 1.0999 and a stop-loss @ 1.0871 Risk/Reward Summary: Limit risk = 70 pips profit / (-58) Stop-loss risk = Gain to Loss ratio = 1.21

2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.0699 with a Limit to take profit @ 1.0650 and a stop-loss @ 1.0739 Risk/Reward Summary: Limit risk = 49 pips profit / (-40) Stop-loss risk = Gain to Loss Ratio = 1.22

Medium Term Daily Candle Chart (Zoomed-in):

EURUSDDaily March 10 2015 note

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