EUR/USD – The Euro Has Crashed through the Summer Lows

The EUR/USD Forex market continues to fall lower. The euro has now crashed through the summer lows at 1.0808 and 1.0848. These lows had, at one point this week, provided resistance for this Forex market. Former support that are resistance are bearish. Please be aware of the 30 year trend line the EUR/USD has been riding.

If this trend line holds, then we could see a quick bullish move higher back through those former support, now resistance levels at the summer lows. We have seen this happen in the past, and you should be aware this could happen again. With that said, looking at the RSI oscillator, it is still in bearish territory which suggests more losses are possible for the euro currency against the US Dollar. Looking at this weeks, weekly chart, we should note a Doji forming. This leads towards some indecision among traders as they are not sure where to take the Forex market next. This could lead to some interesting moves this week in this particular Forex market.

Trade Strategy

My long term euro outlook remains very bearish thanks to the common currency bloc’s stalling economy and recent quantitative easing (QE) program. With that in mind, I am keenly interest in a short euro sale in line with the dominant bearish trend in this Forex market. However, with price action at a very narrow 70 pips, a trade is eluding me at this time. Keep in mind the average trade range (ATR) remains at a mere 100 pips. For now I will opt to stand aside for a better trade opportunity to come along. For today, I am flat in the EUR/USD Forex market.