Today on EURUSD – Daily and H4 charts support Short trades, but...

On the Daily chart above, for about two weeks now, price has been in a relatively “smooth” downward move – probably initiated, or at least aided by the negative MACD Divergence and a few other price actions. The bears are now around another major support level that we mentioned yesterday: a Weekly swing low @ 1.4480 (which we’ve highlighted on the Daily chart using the lower blue broken line). Given the steep price-collapse the EURUSD has been experiencing, it won’t be surprising to see the 1.4480 level acting as a very strong support, which might possibly aid a bullish retracement. That, however, is for now a mere conjecture: the information we have at the moment is still good enough to sustain our bearish bias from a day-trade perspective. In seeking Short trade opportunities, we would like to see price break below previous day’s low @ 1.4503 (not highlighted); but to be on the safe side – especially for more conservative traders – it’s even better to see price close below the critical 1.4480 support level – meaning waiting for today’s candle’s close before taking action.

On the H4 chart above, price broke, at that time, the most recent swing low @ 1.4585 (which we’ve highlighted using the upper blue broken line) downward. That automatically sustained our bias in favor of a downward price move. As discussed on the Daily chart, before seeking Hourly Short trade setups, we would, at least, like to see price break below the previous day’s low – also the most recent swing low @ 1.4503 (which we’ve highlighted using the lower blue broken line).
The white horizontal line @ 1.4684 highlights the most recent swing high, and as long as price stays below it – in the absence of any new and lower swing high – our bearish or downward bias remains intact.

However, we still need our Hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our Short positions. Price pattern on the Hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.