EURUSD: Tracing the Euro with ECU makes it go even lower

Carol Harmer Charmer Trading

EURO/USD

Euros are correcting some of the losses of yesterday....but can we get above the Daily Pivot which is located at1.1254....This will be the struggle today...There is a hell of a lot of resistance overhead....least of all the break point of 1.13...I am not sure we can reach the weekly Pivot of 1.1383 or the monthly located at 1.1413....but I think today we should see a recovery....The key will be if we can break the 1.1254 region... Now the daily charts are not oversold....so there is room for further downside moves...we have been waiting for this move below 1.13...we knew Double Bases hold...but on the 3rd attempt they break and this is exactly what happened....and we posted 1.1216 lows...You all know my feeling on this market...I do believe the weekly and monthly charts are showing the way...and that way is down...Of course it shouldn't go down in a straight line...but that 1.1184 which I mentioned yesterday is a good short term objective....Now as this sees the 61.8 tested...and I think given the recent action that this area will hold...We are below the weekly 200 period M/A and this is not good news...but none of it has been good news since the failure at our 1.18 area....The measured target from the pattern on the weekly chart is dire...it is 1.0050...not good news at all for the Euro....as that would take out the 1.03 area...be under no illusion that this cannot happen...Euro has All Time Lows of 0.8227...and that was at conception..Tracing the Euro with ECU makes it go even lower...and WW3 didn't start then...and it wont now...It just means that the Eurozone isn't making much sense at the moment...Now how do we trade this...well..we are sellers... obviously...but I don think today is the day....I would like to see some strength come back into the market...it had its day off yesterday with the US closed...but I think today we have a rally...not much...I think between 1.13 and 1.1350 would be enough....we are sellers here...and keeping stops above the Weekly pivot of 1.1383...Yesterdays action was a bit dire...but we will get the chance to be short of this currency...It is just that so does everyone else thus making me a bit nervous of shorting down here ...I would rather sell the bounce...as I said yesterday...stops would have been either just below 1.13 or 1.1250....so we wait and watch for the right time to sell...and not join the headles.

EURUSD Current Trading Positions

Sell 58%

Buy 42%

Avg Sell Price 1.1421

Avg Buy Price 1.1636

Liquidity Distribution

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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