Today’s trading technical analysis for EUR/USD 29 July 2011, our advice to trade short (sell) in EURUSD below 1.4295 level for target of 1.4255 and then 1.4215 levels also place protective stop loss above 1.4315 zone.
Why EURUSD is trading down :
EURUSD pair has broke below the support of 200 SMA on 4 hour chart and we expect some more selling coming in this pair, as there was a news about downgrade of Spain by Moody’s. This has brought change in the sentiment of investor in short term. So we are now looking for selling opportunities as long as the EURUSD pair remains below 1.44 level. We also advice traders to stay cautious as 1.4260 level is 38.2% retracement level and the pair may take some support at that level. Still our short positions are valid and technical indicators have signaled our entries, so trading in the direction of the trend we see selling opportunities only.