Sideways consolidation on Friday has left our trend analysis and forecast unchanged for now, though we are now actively looking to short (see preferred trades below): the euro has stalled above 1.2920 but the trend remains strongly bearish and calling a bottom is fruitless until we see meaningful technical evidence that the trend has changed. That is not to say the pair is in need of a bullish correction, but at this stage a correction would most likely come about as a result of profit taking, not meaningful sentiment shift, and therefore we expect to find more offers on any rally toward 1.30. A sustained break back above 1.30 would shift our bias to neutral, and a break above 1.3050 could signal a low has been formed at 1.2920.
Our Preferred Trades*: We are looking to get short on a rally to 1.3015-1.3050 with bearish candlestick confirmation, targeting a new low to 1.29. Alerts will be sent out if that setup develops.
Yesterday’s EUR/USD SwingPRO Signal Result: No trades taken Friday.
Today’s SwingPRO Signal: Short on support breaks. See preferred trade above.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
