The EURUSD has consistently been heading down since January 2018 but it hasn’t been the smoothest of rides.
The journey down has been plagued with long periods of consolidation which are highlighted on the chart.
The shortest period of consolidation lasted 53 trading days and the longest was 144 trading days.
The most recent consolidation period was for 94 trading days and has finally started to break out to the downside.
The bias was for a break below support as price is in an overall downtrend.
This may be a fake breakout which is why we do not want to be too hasty and jump into a short position prematurely.
We need extra confirmation in case price decides to return back up and re-enter consolidation.
Waiting for price to move down and pull back then waiting for a second breakout to the downside will give us more
confidence that we are seeing a continuation of the downtrend.
If price continues the downtrend then the next area of support in the way will be 1.0462 from the March 2015 low (not shown).
We currently have positions running and we will look to add further positions when we have another confirmed breakout.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
The journey down has been plagued with long periods of consolidation which are highlighted on the chart.
The shortest period of consolidation lasted 53 trading days and the longest was 144 trading days.
The most recent consolidation period was for 94 trading days and has finally started to break out to the downside.
The bias was for a break below support as price is in an overall downtrend.
This may be a fake breakout which is why we do not want to be too hasty and jump into a short position prematurely.
We need extra confirmation in case price decides to return back up and re-enter consolidation.
Waiting for price to move down and pull back then waiting for a second breakout to the downside will give us more
confidence that we are seeing a continuation of the downtrend.
If price continues the downtrend then the next area of support in the way will be 1.0462 from the March 2015 low (not shown).
We currently have positions running and we will look to add further positions when we have another confirmed breakout.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
