EURUSD buyers begin to cover long positions

With a mix of disappointing rate hike news in the U.S. and somewhat positive news regarding the Greece bail out, EURUSD surged in today’s trading session. We begin to see the selling action right now as buyers look to sell off their positions as prices tests a previous resistance level.

Since the EURUSD is in an overall bearish trend (consolidation in the recent days), it would make sense to slowly sell into this pair as the Greece woes are far from over.

EURUSD
EURUSD

Currently looking to sell in order to maximize the reward to risk ratio. The stop would be placed just a tad above the resistance zone with much greater downside move. It is possible to draw a Fibos and aim for a 50% retracement if you would like to place it safe. My recommendation is to scale out as necessary based on the price action. Keep in mind that the rate hike is most likely going to be delayed, but it will send the EURUSD into a major selloff when it becomes announced especially if inflation drastically picks up.

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