We are officially out of the daily EUR/USD uptrend channel. The 1.3500 break came at 8:30 a.m. this morning after the weekly jobless claims came in less than expected. I sincerely doubt that a weekly number was the catalyst that broke EUR/USD free from a daily technical level. Rather, the markets are beginning to take notice of US interest rates that creeping steadily higher, and those long Euro have their finger on the ejection button.

For tonight, I would like to be short between 1.3495-1.3500 with stops above 1.3515. I continue to believe that unfavorable price dynamics are creating less than optimum risk- reward ratios. Plus, data is light tonight and tomorrow morning, so I am cutting my trade half size on this trade idea.



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

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