What is clear based on the daily timeframe, the EURUSD is in a downtrend.
This downtrend began in February 2018 and has since been on a slow decline.
Traders with little patience and experience would have found it impossible to short this
forex pair and remain short, but the rewards for doing so would have been in abundance.
If we look at the highlighted sections, they indicate periods of consolidation which occurred
on the way down. The longest period of consolidation was 144 trading days, which was from November 2018
to April 2019. What investors need to keep in mind is that some trends take time. As long as there
is a clear trend direction, regardless of whether the market is moving sideways, price should continue
in the direction of the trend over the long run.
The shortest period of consolidation lasted 53 trading days and the current consolidation stands at
40 trading days and may last longer so we will have to wait and see.
Price is just sitting above the 1.1000 round number which may act as a psychological support level.
What we want to see is a break and close below the 1st October 2019 low at 1.0879. This will confirm
a continuation to the downside.
The behaviour of price can change at any time and we may start to see a fast-moving trend following a break of support.
As long as price remains below the 200sma, the bias still remains bearish.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
This downtrend began in February 2018 and has since been on a slow decline.
Traders with little patience and experience would have found it impossible to short this
forex pair and remain short, but the rewards for doing so would have been in abundance.
If we look at the highlighted sections, they indicate periods of consolidation which occurred
on the way down. The longest period of consolidation was 144 trading days, which was from November 2018
to April 2019. What investors need to keep in mind is that some trends take time. As long as there
is a clear trend direction, regardless of whether the market is moving sideways, price should continue
in the direction of the trend over the long run.
The shortest period of consolidation lasted 53 trading days and the current consolidation stands at
40 trading days and may last longer so we will have to wait and see.
Price is just sitting above the 1.1000 round number which may act as a psychological support level.
What we want to see is a break and close below the 1st October 2019 low at 1.0879. This will confirm
a continuation to the downside.
The behaviour of price can change at any time and we may start to see a fast-moving trend following a break of support.
As long as price remains below the 200sma, the bias still remains bearish.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
