EURUSD Trends Down

EURUSD

Daily

The EURUSD has charted a lower peak followed by a lower trough on the daily. This is the technical definition of a downtrend. The RSI(9) has dipped below 50 and is indicative of bearish momentum. The 4H chart will highlight potential opportunities if the trend remains down.

EURUSD

4 Hour

Potentially we are looking for a bearish 1-2-3 pattern. We have highlighted the 1-2 impulse move down and are now patiently waiting for a 2-3 correction. In effect, we are looking to short the next rally. Ideally the 2-3 correction will move price into the R pivots area which should provide a level for price to react off of. It’s important to not jump the gun, but to rather wait until the signals trigger. In our opinion the daily downtrend makes any rally look attractive for a potential short.

 

High Risk Warning Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Markets Today Market Opinions Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. Markets Today will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information. The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Markets Today has taken reasonable measures to ensure the accuracy of the information on the website; however, it does not guarantee accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or from your inability to access the website, or for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website. Past Performance and Hypothetical Trading Past performance is no indication of future results. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. You should not regard any transaction proposal or suggested automated or manual trading strategies as investment recommendations or advice. You must rely on your own judgement for any investment decision you make in relation to your account.