EUR/USD: Use Short term weakness Monday to get short EUR/USD
EUR/USD Update for week 30.10.17
A perfect test of the upper parallel shown on last week's chart
created a fine entry point for Dollar longs on Thursday before
the Euro flew 278 pips lower creating a big bull-engulfing
red candle on the daily chart and busting below the neckline
of the head and shoulders top formation (shown on last week's
chart) on Friday. Two big bear moves in two days.
This price action only confirms that a significant swing into Dollar
strength is now gathering pace.
The breaking of the neckline creates a minimum medium term
downside target at 1.1242.
However in the very near term (Monday into early Tusday) the
Euro is a little oversold after that 278 pip two-day decline and
needs to consolidate those losses for a few hours before the
sell-off resumes.
Suggest using any Dollar weakness on Monday/early Tuesday
back towards the neckline area at 1.1648-1.1665 (with stops
just 15 pips above the upper end of this range) to increase
Dollar long positions, looking for a decline back to 1.1242
over the more medium term.
Any retest of the upper parallel should also be viewed as
another excellent selling opportunity (should the first stop at
1.1680 get broken} until the downside target is achieved.
A perfect test of the upper parallel shown on last week's chart
created a fine entry point for Dollar longs on Thursday before
the Euro flew 278 pips lower creating a big bull-engulfing
red candle on the daily chart and busting below the neckline
of the head and shoulders top formation (shown on last week's
chart) on Friday. Two big bear moves in two days.
This price action only confirms that a significant swing into Dollar
strength is now gathering pace.
The breaking of the neckline creates a minimum medium term
downside target at 1.1242.
However in the very near term (Monday into early Tusday) the
Euro is a little oversold after that 278 pip two-day decline and
needs to consolidate those losses for a few hours before the
sell-off resumes.
Suggest using any Dollar weakness on Monday/early Tuesday
back towards the neckline area at 1.1648-1.1665 (with stops
just 15 pips above the upper end of this range) to increase
Dollar long positions, looking for a decline back to 1.1242
over the more medium term.
Any retest of the upper parallel should also be viewed as
another excellent selling opportunity (should the first stop at
1.1680 get broken} until the downside target is achieved.