If we were to measure the EURUSD long-term downtrend move from May 2011 to Jul 2012, and clone this same move to the downtrend that started on May 2014 just below 1.40, you will find that this move could have potentially ended when it touched just below 1.11 just hours ago. Once touched, the support level held and EURUSD rebounded to the current level of about 1.1180.
Would thus strongly recommend those who have been shorting EURUSD to take profit on their shorts right now.
For those who are squared, can look at getting into long positions as it breaks 1.1208, adding on positions using stop orders at intervals of 25 pips each. A good short-term target is when the price meets the short term downwards trendline, currently slightly above 1.15.
For those going for mid to long term, the 38.2% (around 1.22) and 50% (around 1.25) retracement levels will prove to be good points to take profit. Just be mindful that your long-term positions can withstand higher volatility which we are already seeing in the markets these days.
Would thus strongly recommend those who have been shorting EURUSD to take profit on their shorts right now.
For those who are squared, can look at getting into long positions as it breaks 1.1208, adding on positions using stop orders at intervals of 25 pips each. A good short-term target is when the price meets the short term downwards trendline, currently slightly above 1.15.
For those going for mid to long term, the 38.2% (around 1.22) and 50% (around 1.25) retracement levels will prove to be good points to take profit. Just be mindful that your long-term positions can withstand higher volatility which we are already seeing in the markets these days.
