There is a clear downtrend on EURUSD since the middle of January. It has broken a very strong support level, which may now act as a resistance with the long daily wick that occurred at the end of last week. This is also where the 0.5 Fib stands and is very close to hitting the upper trend line of the descending channel. I will be weary of the short position since 2 weeks ago there was a spinning top and last week there was a bullish engulfing on the weekly charts.
(Be patient and wait for break of 1.12500 area to confirm sell)
(Be patient and wait for break of 1.12500 area to confirm sell)