The EURUD pair has been sitting at a key price level which is critical to the short term bias. Having flirting with 1.335 region, this level marks an important point. A break of this level could see price heading towards 1.32760, whereas should 1.335 hold, price could see a short term rally towards 1.3551.
At the time of writing, price looks quite bearish and for any signs of rally, we need to see a close above 1.3376 and 1.34010.
The overall bias of EURUSD is bearish as this point in time, with price having broken a long term trend line and also having made a minor pullback to 1.3676.
- If we see a close above 1.34010, long positions could be initiated targeting 1.35510. This level would be a prime target to sell the EURUSD.
- A close below 1.33760 could see price drop to 1.32760. A retest from 1.3376 could be ideal for short positions.
- Alternatively, if price drops directly down to 1.3276 without any retracements, our view would be a continuation of the sell off. Not ruling out a retracement to 1.3376, which could be used to target EURUSD to further levels of 1.3176 through to 1.3126.
- At the moment, price action is tricky and therefore it is recommended to stay on the sidelines until price decides to choose its direction.