EUR/USD, what can't go up, must go down!

eur-usd 26.02.

After mixed data from US, EUR/USD tumbles true the previous support level at 1.1260/70. At this moments trying 1.1222 level, as you can ses, the previous ‘boost’ level from January 26./27. Could this level be broken as well? Euro is to weak to fight in theese moments and furdr decline is possible. Next minor support could be aprox 1.1200, previous support from January 23. and resistance from January 26. Bears looking at previous multi year low, 1.1100 as target, that’s for sure!

AM partner01

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2 comments

  • christopherglendinningmiller

    Also I have just seen that the daily pivot is at 1.12536 which gives congruency with an entry short at that level.

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  • christopherglendinningmiller

    There is a lot of evidence that EUR/USD will continue to go short. The lower Donchain Channel has broken and there has been a breakout of the very tight range that has persisted all month. Interestingly the monthly candle has now turned bearish – incredible what can happen in just one day. Looking across the indicators there is very little that can give the bulls any inspiration. However looking at Ichimoku, tenkan sen has just moved above kijun sen by 1.4 pips and chinkou span is about to enter the price action. However both tenkan sen and kijun sen have downwards trajectories which is really quite bearish. I do think that we will be seeing a bounce which will present an opportunity to re-enter short. The 382 fib level of the move down comes in at 1.12585 which might present a good opportunity. My concern is that during roll over there seems to have been little retracement which means that positions are not being closed and thus the 382 fib level will not be hit. However tomorrow is Friday and the last trading day of the month. It may be that profits will be taken with the consequential retracement possibly back into the range where we have spent most of the month. The weekly COT will be interesting to see if the level of Euro shorts has decreased. Generally it is a difficult one though I do favour the possibility of seeing EUR/USD head lower going into the weekend.

    Liked by 1 person

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