Hello, dear Traders! Hope you are all well and trading is profitable.
The Euro remains still under strong pressure and USD strength is gaining, especially before the US Presidential Elections. The long-term downtrend has been tested in July and since then pair is stuck in a side-ways movement. Recent strong moves down are accelerated with the ongoing Covid crisis in Europe as well and with the renewed closures from France and Germany.
Technically speaking:
1.16157 remains key horizontal support that block the Bears to push down the price further below the upside short-term channel. I expect that this level will be tested again as in September. From there, there are two ways the price action may develop:
1. Price bounce back inside the short-term upside channel and goes to test the upper long-term downtrend line or:
2. After the bounce back from the line, the pair meets new resistance circa 1.17000 level and continues the movement down towards the 1.14000 level.
Demarker is moving slowly in oversold zone, but as we know, when the indicator crosses the 0.3 line from up, the price will make last impulse in that direction. 200 MA is still away, but may play out as a magnet for the Bears.
I am staying short-term short because:
1. Demarker shows there is still room to sell;
2. Bears are prevailing for now;
3. Trend is still downtrend;
4. My gut tells me the 1.16157 line will be breached;
5. USD will keep gaining strength
Fundamentally speaking:
Economic indicators for the Euro Zone remain stable, though EU is ready to pump up more stimulus.
The Euro remains still under strong pressure and USD strength is gaining, especially before the US Presidential Elections. The long-term downtrend has been tested in July and since then pair is stuck in a side-ways movement. Recent strong moves down are accelerated with the ongoing Covid crisis in Europe as well and with the renewed closures from France and Germany.
Technically speaking:
1.16157 remains key horizontal support that block the Bears to push down the price further below the upside short-term channel. I expect that this level will be tested again as in September. From there, there are two ways the price action may develop:
1. Price bounce back inside the short-term upside channel and goes to test the upper long-term downtrend line or:
2. After the bounce back from the line, the pair meets new resistance circa 1.17000 level and continues the movement down towards the 1.14000 level.
Demarker is moving slowly in oversold zone, but as we know, when the indicator crosses the 0.3 line from up, the price will make last impulse in that direction. 200 MA is still away, but may play out as a magnet for the Bears.
I am staying short-term short because:
1. Demarker shows there is still room to sell;
2. Bears are prevailing for now;
3. Trend is still downtrend;
4. My gut tells me the 1.16157 line will be breached;
5. USD will keep gaining strength
Fundamentally speaking:
Economic indicators for the Euro Zone remain stable, though EU is ready to pump up more stimulus.