hussein.ahmed
Short

Bearish Formation

FX:EURUSD   Euro Fx/U.S. Dollar
119 2 0
Keeping a closed eye on the pair, it is clear that the pair has broken the long bullish trend support after Draghi lowered benchmark interest rates to negative levels. Later the pair found support at the 1.3500 level and retraced back to the 38% Fibonacci to fail to break above that level. We could see a formation of a BUTTERFLY pattern right before the bearish trend . It is also trading below its 200/100 DMAs confirming a bearish momentum. Fundamentals indicate that the ECB will start LTRO in the near time using maximum purchases of One trillion Euros. The ECB has to fuel inflation and depreciate the EURO             in an attempt to boost the economy and exist the threat of deflation. We should keep an eye on consumer prices figures in the coming weeks. Rising euro             will cause export demand to fall and will put the EURO             area in risk of deflation. LTRO might cause a hike in EURO             bond yields which might increase borrowing costs on weak Euro             members as Greece. I suggest waiting for another bullish move and watch if it will break the resistance area , if not then the bear trend is in power. A closing candle below the 1.3500 level also indicates a true bearish trend .
@technician You are very welcome, have a nice trade.
Reply
Thanks, I have a bearish bias as well.
Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Support Priority Support Report Issue Ideas Published Followers Following Private Messages Chat Sign Out