EUR/USD stays inside channel

Hello everyone,

Not only did equities tumble down, the EUR/USD pair fell more than 200 pips, and Gold is getting lower and lower. In my last post on currencies, I identified a crucial support of 1.3000 for EURUSD. A day later, EURUSD broke through convincingly, and right now it is trading at the 1.27 region. People will attribute the down move to the uncertain political climate in Greece, and some bad news in Spain as well. But, for me as a chartist, I see this down move as the EURUSD finally collapsing after trying to poke through the resistance trendline of a strong, huge downward parallel channel. Price should not just keep tumbling down, so we may see some sort of consolidation in the days ahead. Take note of the recent low of around 1.2690 that EURUSD made at the beginning of this year. I see stronger support coming in at 1.2500. If you look back in history, EURUSD made significant bounces off this area. With that, I will peg a short-term target at the 1.2500 region.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: