On the
daily chart of the EUR/USD we can see that the 55 period exponential moving
average has crossed below the 200 period exponential moving average since the
middle of this year. This is what they call in technical analysis a “death
cross”. The moving averages cross overs are not very accurate as entry signals,
but when the 55 EMA crosses above or below the 200 EMA, this could indicate a
possible continuation of the trend in the direction of the cross.
On the
EUR/USD we can see that since the EMAs cross, the price has kept its downtrend,
even though in some occasions it has tried to correct to the upside. Today we
see that the pair has come back down and if we see a breakdown of the 1.2400
level, the longer term bearish trend on the EUR/USD may continue.
If it breaks below the previous low we can be certain it's not forming a double bottom and it will likely continue to target 1.2200.
ReplyDeleteI fully agree with your analysis.
ReplyDeletewell let's wait and see
ReplyDeleteGreat analysis.
ReplyDeleteVery nice thank you very much.
ReplyDeleteI agree with the analysis, excellent point of view.
ReplyDeleteI fully agree with you.
ReplyDeleteDownside is wide open.
ReplyDelete