The EUR USD is still exhibiting signs of indecisiveness but today’saction is beginning to show a downward bias. Yesterday this pair madea reversal up, but today is working on a reversal down.
The EUR USD is still exhibiting signs of indecisiveness but today’s action is beginning to show a downward bias. Yesterday this pair made a reversal up, but today is working on a reversal down.
The main range is 1.3748 to 1.4201. The retracement zone at 1.3974 to 1.3921 provided support yesterday when the market stopped at 1.3875.
Today’s rally stopped at 50% of the 1.4201 to 1.3875 range at 1.4038.
This ping-pong type trading on both sides of retracement zones demonstrates that the Euro has turned into a trading market rather than a positioning market but conditions may be changing.
The bigger picture shows distribution is taking place because of the series of lower tops and lower bottoms. If this pair can continue to maintain this type of movement then it should eventually trade down to a major 50% price at 1.3610.
Another sign of developing weakness is the penetration of the uptrending Gann Angle from the 1.2884 bottom at 1.3984 today. This angle is moving up .002 per day. Yesterday it penetrated this angle but today it can close under it.
Based on the swing and the Gann Angle charts, all indications are for lower markets to follow.