EURUSD pair has been falling after the Italy downgrade. So we have seen Euro falling towards 1.40 level from 1.4575 level this is about 500 pips fall so our near term outlook is now bearish. Fundamentals has weaken for the EURO as Italy debt crisis has now emerged as one of the big issue for EURO, so this can be the bad news for the market participants. So trading with the trend we are only looking for the selling opportunities as long as the pair remains below the 1.4105 level. so trading with the trend we sell EURO around 1.4075 for targets as 1.4035 and then 1.4005 zone in intraday trade. Even technical indicators are showing clear bearish trend picture. Also we advice traders to keep their stop loss with 1:2 risk reward ratio and try to trade with good money management skill.
Our Recommendation on EURUSD : Technical analysis idea (tips) for EUR/USD 18 July 2011, we recommend to enter short position (sell) in EURUSD below 1.4075 for first target as 1.4035 and second target as 1.4005 also place protective stop loss above 1.4095.