Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.1548)
Three points to consider
- The Euro has seen its fastest corrective bounce higher since 2009
- Overall tone and outlook remains bearish euro
- Trade Strategy: Stand Aside
The EUR/USD Forex market has now hit its highest price level in seven month. Buyers have taken the euro above the key 1.17 level. Please refer to the below EUR/USD daily MT 4 Chart for today’s technical analysis.
Technical Analysis
Let’s look at today’s EUR/USD technical analysis. The speed of this current euro recovery has been fascinating. So are the price levels the Forex pair are revisiting. This is now the fastest push higher since 2009. However, the overall tone of the euro is bearish and my overall long term euro outlook remains bearish.
Trade Strategy
Now let’s discuss the daily EUR/USD trade strategy. Taking a long EUR position seems a bit premature. The euro has been on a downtrend since 2008. Financial markets never move in straight lines but cycle and pose counter-trend correction in the short term. This is what is happening here. Looking at historical price charts, large scale ERU/USD upswings have been about 20 percent. This current move higher is barely 12 percent and small compared to other corrective bounces. Let’s look at this from a simpler angle. This current bounce higher does not come close to breaking the long term bearish EUR/USD momentum. Keeping this in mind, I will opt to stand aside and monitor my charts for a short euro trade in line with my long term bearish outlook for the common currency. For today I am flat in the EUR/USD forex market.
