Added a second short position at 1.3177. Stop on this one set at 1.3260 and target 1.2850.

Went short on the latest rally towards the upper hourly channel line. Stop 1.3350, and target is 1.2850.

Hourly Chart:

The pair has been under continued pressure and more downside over the next few days is likely, with good support coming in at 1.2840 (rising and falling daily trend lines, 21.4% Fibo level). Hourlies are nearing oversold, and hourly RSI is supported by a rising and falling trend line. 1.3080 should provide support and I expect a limited bounce in the short term with more downside over the next few days. Plan on going short on a failure to break out of the bearish hourly channel.

Support: 1.3080 H-11-25   1.2970 H-12-8   1.2840 DSpptRsst

Resistance: 1.3140 HSppt   1.3330 HSpptRsst   1.3440 HSpptRsst

RSI: Dly: bearish, Hrly: supported by rising and declining TLs

Hourly Chart:

Daily Chart:

The pair appears to roll over and turn down in ther short term. Upper hourly channel TL has been broken though, calling for further upside. But then again, the break of the lower channel line proved to be false. No big preference at this point, and too early to go short against the prevailing hourly uptrend. Sidelined for now until a clearer picture emerges.

Hourly Chart:

Closed my short trade ahead of my profit target, at 1.3460. Booked a nice 492 point profit on this trade. Price is now hitting the lower hourly channel line, and potential for a divergence forming on the hourlies is high. It is quite possible we will see further downside in the short term though, but 1.3380 should provide good support.

Hourly Chart:

Extended my target from 1.3550 to 1.34 since the break of 1.3825 was followed by very heavy selling, calling for more downside. Stop lowered to entry level at 1.3955.

Tightened my stop to 1.3990.

Went short as the pair hit the declining hourly TL and stalled. Stop set at 1.4010, target 1.3550.

Hourly Chart:

I added a live chart of the EURUSD pair to the sidebar, and a larger version can be accessed here.

Dailies and hourlies are rolling over, and the daily up TL has been broken. A move towards 1.3745, and potentially 1.3530 is now likely. The declining hourly TL is key for the short term, and I expect one more upswing against it, likely to coincide with resistance at 1.3985. Dailies are also bearish looking, we have three declining candles and the EMA10 is rolling over. Key support at 1.3825 is under pressure and all indicators are suggesting further downside at this point.
I am planning a short on a failure near 1.3985. A breakout sell order at 1.38 doesn’t have enough profit potential, since 1.3745 could limit the downside.
A break above 1.3985 would call for a move to 1.4145, then 1.4360. A break of 1.4360 would call for a move towards 1.47.

Support: 1.3825 L-12-19   1.3745 DFibo38   1.3633 Fibo50

Resistance: 1.3985 HRsst   1.4145 HRsst   1.4362 H-12-29

RSI: Hrly: bearish (below 50) and rolling over again, Dly: breaking below rising TL

Hourly Chart: