After being hammered in the last weeks by the Euro, I became very confident that currently there are no available technical bull option for the Euro. The previous week, tenuous channel, evaporated with a down swing without any fight. The marte has been swinging in the last few months in a very well defined range, with only a failed breakout (really nasty bear trap!). As of today here are very strong bear bars that crushed the last support. As I write this, the 50 MA is holding some down pressure, but this will most probably break soon.The pressure now is currently totally to the down side, and due to this ranging tension we are now due for a possibly big breakout until the 1.13 region or even lower to the fib ratio of 1.1136 (marked with a yellow roval).
The bulls may still have some hope. The first is that momentum is positive and is in sync with price, in the last 2 upmoves. The other is that, if we look attentively, a very clear inverse head-and-shoulders, may be in place. These, I believe, are fatuous. I'm presently shorting EURUSD and, unless something dramatic in the news happens, I'm holding my position at least until the end of the week. Due to the swinging nature of the current situation, My risk/reward ration is close to 1.0, so this will be a high risk trade.
The bulls may still have some hope. The first is that momentum is positive and is in sync with price, in the last 2 upmoves. The other is that, if we look attentively, a very clear inverse head-and-shoulders, may be in place. These, I believe, are fatuous. I'm presently shorting EURUSD and, unless something dramatic in the news happens, I'm holding my position at least until the end of the week. Due to the swinging nature of the current situation, My risk/reward ration is close to 1.0, so this will be a high risk trade.