Trade of the day: EURUSD

The pair closed last week on a bearish note and technically, since it opened today below the pivot price which is at 1.0560, we would normally expect to see it head further down. However there are some things to note based on the price action being observed.

As seen from the chart, as at the time of this analysis, price seems to be making an effort to break out of the bearish channel. If this succeeds we will likely see  a close above the 50 MA and further challenge for price to move above the days pivot. The RSI is also clearly gathering some upward momentum.

The best recommendation for this trade would be to carefully observe price action before making a move. If the candle does not succeed in breaking out of the channel, and ends up as a rejection candle, consequently remaining below the MA and the pivot price, then short positions should be taken with targets around 1.0510 and further down at 1.0480. But in the event that price does breakout of the channel, moves above the MA and also above the pivot, then long positions will be best, with targets around 1.0585 and further up at 1.0615.

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