EURUSD Bearish Engulfing Week to Keep Downside Pressure Intact
For the better part of March, the EURUSD looked relatively bullish, particularly the March 27th close above the 1.0825 handle. The level dates back to 1999 and was responsible for the February 2nd bearish pin bar earlier this year.
Moreover, 1.0825 is the 38.2% Fibonacci retracement when measuring from the 2016 high at 1.1615 to the current 2017 low at 1.0340.
All of this means that the March 28th close at 1.0814 was a significant development. It signaled that the earlier bullish break of 1.0825 was false and that a move lower was likely.
Note that the high of the very next session (March 29th) was 1.0826. Sellers have been in control ever since.
From here any retest of the 1.0712 handle could present an opportunity to get short. Key support comes in at 1.0635. A daily close below that would pave the way for a retest of recent lows near 1.0520.
Adding to the likelihood of further losses is the large 260 pip bearish engulfing pattern from last week. The move is more than enough to keep my bearish bias for the single currency intact.
Moreover, 1.0825 is the 38.2% Fibonacci retracement when measuring from the 2016 high at 1.1615 to the current 2017 low at 1.0340.
All of this means that the March 28th close at 1.0814 was a significant development. It signaled that the earlier bullish break of 1.0825 was false and that a move lower was likely.
Note that the high of the very next session (March 29th) was 1.0826. Sellers have been in control ever since.
From here any retest of the 1.0712 handle could present an opportunity to get short. Key support comes in at 1.0635. A daily close below that would pave the way for a retest of recent lows near 1.0520.
Adding to the likelihood of further losses is the large 260 pip bearish engulfing pattern from last week. The move is more than enough to keep my bearish bias for the single currency intact.
