Faraday analyst Thomas Light is looking to short EURUSD after last week’s retracement.

According to Light, the daily candle chart shows that prices are stair-casing lower within a descending channel. Last week’s retracement has taken the market back towards the top of the channel and Light is now looking for signs of bearish price rejection, he says. 

His primary strategy will be to execute a short position within the potential reversal zone but only if he sees clear signs within the price action that the market has formed a new swing high. Alternatively, if prices snap the retracement line he will look to sell into the first pullback.