EUR/USD hit
a support level it could not break below and bounced back, though now it
appears to be heading south again. To be honest, at this point I am uncertain
whether this is a continuation of the downward trend or it is part of the
correction. It could even be an attempt to form a double bottom before it
begins climbing again. It is Friday afternoon, so I doubt the situation will
become any more clear before the market closes later today. We might have to
wait for next week before we are able to tell whether the bearish trend will
continue.
The fragility of the economic recovery in the Euro Zone is feeding the bleeding of the pair.
ReplyDeleteThe break above 1.2700 brought a short squeeze to the 1.2780-1.2820 price region, with resistance at 1.2790 eventually bringing about heavy selling and profit taking to bring the exchange rate back below 1.27. With the pair in its third day above its 10-day moving average we expect short term bullish correction to continue (despite long-term downtrend and bearish fundamental environment) and will look to set a long on a drop back down to the 10-day.
ReplyDeleteVery Good analysis. The doubt is large!
ReplyDeleteGood job, thank you for the great analysis.
ReplyDeletelet's see how the market will start in the beginning of the week
ReplyDeleteThe downtrend could be resumed
ReplyDeleteLet's see what would happen this week.
ReplyDelete