Tuesday, August 18, 2015

Directional move downwards continues in eurusd

A directional move downwards that started last Wednesday, on the 12th of August continues this week. There are actually no signs of reversal on hourly chart as price in eur/usd is making lower lows and lower highs. The best plan of action is surely to go with the move. In most situations you need to wait for a rally above Asian session highs and trade a reversal. You can get pretty good levels to place your stops, despite the fact that the moves in the pair are not that big, probably because of summer. 

1.0950-80 area should act as support as it was strong resistance before the pair broke upwards on the 10th of August. This area might even be reached today, but I kind of feel it will be visited not earlier than tomorrow. What happens when it is hit? 

It all depends on the data from US. If CPI comes better than expected we might see Euro moving lower and possibly going back to key support level of 1.0800. If it is worse than anticipated Euro will probably rise against US dollar and go back to 1.1200 area or even 1.1500. It all depends on how soon FED is going to raise interest rates. 

Directional move downwards in eur/usd

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