EURUSD has held a bearish bias for quite some time now and the recent referendum and Brexit victory has only brought back in the bearish momentum. As you can see in the image below EURUSD has been in a consistent downtrend since about the middle of 2008.
Understanding that the long term directional bias is to the downside and having just broken a significant short term uptrend line/consolidation zone, there is a high probability that EURUSD will see lower prices. Price is currently retesting the bottom of that short term up trend line which is statistically a good entry point on such a set up. It would not be bad opportunity to sell EURUSD in anticipation of lower prices and trend continuation, however, with the uncertainty of the Brexit victory it is important that you use caution. It is strongly advised to take a small position size and use a wide stop to ensure that the trade has room to play out. We have been avoiding trading Euro and GBP pairs all together as a result of this uncertainty and in fact we have been advising our Virtual Trade Floor members to not trade those pairs either. While we are still advising to avoid trading these pairs, a conservative position on a EURUSD short at such time shouldn't pose too much risk so long as the appropriate position size is utilized and the appropriate stop loss is used.
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Understanding that the long term directional bias is to the downside and having just broken a significant short term uptrend line/consolidation zone, there is a high probability that EURUSD will see lower prices. Price is currently retesting the bottom of that short term up trend line which is statistically a good entry point on such a set up. It would not be bad opportunity to sell EURUSD in anticipation of lower prices and trend continuation, however, with the uncertainty of the Brexit victory it is important that you use caution. It is strongly advised to take a small position size and use a wide stop to ensure that the trade has room to play out. We have been avoiding trading Euro and GBP pairs all together as a result of this uncertainty and in fact we have been advising our Virtual Trade Floor members to not trade those pairs either. While we are still advising to avoid trading these pairs, a conservative position on a EURUSD short at such time shouldn't pose too much risk so long as the appropriate position size is utilized and the appropriate stop loss is used.
Stop trading alone… Trade with us in the World’s first Virtual Trading Floor: goo.gl/rKtBwT
Tune in LIVE on YouTube goo.gl/g8sWn3 every Monday, Wednesday, and Friday at 7 P.M. Eastern Standard Time to learn how to trade the Forex market like a professional!
Follow us on our social media:
Google+: goo.gl/05cyms
Twitter: goo.gl/L1ncLG
Instagram: goo.gl/YZvVR3
Snapchat: Unique4xPro
TradingView: goo.gl/9Ab588
Comment:
Pin point entry here... downside continuation is to be expected.