Now or never on the EURUSD
|EUR/USD is having a now or never moment on the long term chart. We are on a very important support and it seems that it is the last chance for buyers to initiate a correction. This support is created by lows from April and December 2015 and looks like a very important stronghold here.
Apart from the horizontal support, correction may be supported by three additional factors here. First one is the gradient of the decline itself. It would be very unusual for the price to go much lower without any correction. Second one is the price action on this support. As we can see on the daily chart, the latest two candles have long tails, which indicate that demand woke up and showed some activity on those levels. Additional factor can be the Thanksgiving Day. To be precise I think that some traders will just capture profits and close most of their short positions before the long weekend.
Going long here is obviously against the trend, which is always more risky and makes potential profit less probable. But this time we can spot really relevant buying signals here, not to mention those from various oscillators and indicators like RSI or CCI. Well, at least in the short term as the long term sentiment stays the same here and favors the sellers.
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