The chart above shows us the EURUSD on the weekly Time frame. Two weeks ago, we saw the pair close with a bearish engulfing candle. This has given more momentum to the bears the following and the pair closed in red. This week, we have seen very little movements in the euro dollar and hence pushed me to look at the pair on the weekly chart.
We are still in an up trend based on the fact that the pair has not broken below the uptrend channel that we see on the chart. However, the bearish candlestick two weeks ago shows us that we might be in for some bearish retracement.
How far down could we go?
The first support could come in at 1.35. That level have not been visited since the 3rd of February and it could be revisited again. We could see some reaction at the round number 1.36 where we can see a trendline support.
So, if you are going short this pair, do look at the levels that I have mentioned.