Home Daily Analysis Charts / Trade Ideas This Figure Could be Very Bearish for the EuroDollar!

This Figure Could be Very Bearish for the EuroDollar!



The Euro-dollar has been moving directionless for some time, drifting in a range between $1.1194 and 1.129.  Yesterday the Pair made a nice bullish candlestick with traversed almost this whole range, but today the price action is moving the range un opposite direction.

The indicators seem to indicate bear continuation, MACD and CCI turning to more bearishness, and the bearish price rejection from its 200day SMA a month ago are signs of the weakness of the Euro, even when the Dollar itself has been weakened by the recent dovish actions and commentaries by officials of the Federal Reserve.

To confirm the next bear movement, we need two facts:

1.- This bearish candle has to end. Currently, we still are at the beginning of the American session. We need to check if this negative action continues for the Euro.

2.- The price has to cross the recent bottoming level ($1.119).

If that happens, we see the price trying to test the nex support of $1.1125. If this support is also pierced, then 1.10 and 1.08 wil be its next supports, and potential targets for short positions.



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