The EUR/USD bounce from the daily trend support we spoke about before has not been all that impressive. For now, let's defer to the 4-hour trend channel resistance as the basis for our trades.

If your risk tolerance allows it, look to sell a small amount of EUR/USD at the current level of 1.2800. I stress small because the stop on this first piece needs to be above 1.2860. Then, the first real level we're looking to sell is the 50% retracement on the day at 1.2825. After that, the 61.8% can be sold at 1.2845. The stop on your total position will began at 1.2865 and move down as the day trade progresses. I highly suggest you scalp in and out of this at it moves lower for you. As I mentioned below, EUR/USD in this zone will be rather choppy due to the conflicting support and resistance levels. So don't expect the market to collapse a big figure once you're short like last night's EUR/JPY.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.