The euro might be under fresh selling pressure as an ECB official recently spoke of the possibility of negative deposit rates in the region.

On its 1-hour time frame, the pair is testing a falling trend line connecting the recent highs, at the same time finding resistance at the 140.00 major psychological level. Take note though that stochastic is still moving higher, which suggests that there might be a brief pullback before it resumes its selloff.

Shorting at market with a wide stop above the recent high or around 140.50 and a target of the former lows around 137.00 could yield at least a 2:1 return on risk.

By Kate Curtis from Trader’s Way