I don't like the structure for the Euro at the moment. For my previous post and context see below:
However short term I will adjust when necessary. Have a look at my view for the dollar index for context and my short term bias.
I will monitor both instruments but I like to see a reversal for a buy of the EURUSD and sell of the Dollar index. Dollar index might be clearer in terms of structure since we already saw a bearish impulse and only need to wait for the confirmation of this current price action to be a consolidation.
EURUSD however is moving lower relatively strong and if we see it start moving sideways we have to keep in mind that this most likely will result in a bearish continuation. I will therefore update this pair once we see a possible reversal or consolidation. Nevertheless I like to have a trade plan for both bullish and bearish price action.
Yesterday I mentioned that I didn't like the structure and that made me conservative. The strong move lower was erased very fast and price is back above the key zone again (blue dotted lines). I will be looking for a bullish continuation. If it moves lower from here I let it go and will re-evaluate.
Comments
fOREXeCHO
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Have you noticed that the price has broken down the daily trendline since December? Sir.
TimStuyts
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If we see a daily break (daily candle) that might be the first clue for more bearish price action. I was looking for a deeper correction this morning which didn't get activated. However only if we break lower in an impulse (which we are seeing right now) and this will be followed by a consolidation the break actually make sense. I like to see that consolidation for a potential sell trade.