The EURUSD has been in a steady decline over the past few days since hitting its high of 1.4843.

Today we made a nice tailing bottom on the 120 minute forex trading chart and we have broken above our downward trending line.

The 45 MA at 1.4637 is still holding but we could be in the midst of a reversal. 1.4650(the 9/29 high) would be the last line of resistance for the short and would include a 120 minute trend line break if the level is broken.

If you have missed this latest run then I wouldn’t take any new shorts unless you have a tight stop.

by David Terk