Italian Bond auction is to be done today and ahead of event we have seen huge selling in Euro against US Dollar. There is still more uncertainty and concerns regarding Italian bond auction across European region. Selling on EURUSD was so intense that, pair has made fresh 20 Months low at 1.2847 falling by more than 50 pips in few minutes, and the pair is still under selling pressure. Any pullback or risk rally should be used as selling opportunity on Euro vs US Dollar. Looking at SSI (speculative sentiment index), there retail traders are still net long and taking contrarion view more downside is possible on EUR/USD forex pair. Forex traders must stay alert as there is important news event this week i.e NFP (Non Farming Payroll) on Friday. On charts Euro has support at 1.2856 (previous low) also 23.6% Fibonacci retracement level coincides there, hence may be strong support till price action stays above this major level.
How to trade Euro for short term: Short EUR.USD near 1.29 for short term targets as 1.27 and then 1.26 levels, while placing stop losses at psychological level of 1.30