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EUR/USD: Pull-Back Extending; Down-Trend Expected To Resume

Published 03/17/2015, 05:38 AM
Updated 07/07/2019, 08:10 AM
EUR/USD
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The EUR/USD pair has recovered and pulled back into support and resistance from the S3 monthly pivot at 1.0583.


The down-trend remains intact, even on a very short-term time-frame, despite the recent push up through the trend-line on the 4-hourly chart.


I would expect it resume at any time – especially now it is bumping up against S3 - and take the pair lower, with a break below the current 1.0461 lows confirming the next 'trip' down to a target at the 1.0400 level.


Yes, the pair is oversold and we know that statistically there is a low chance of a break below the S3 pivot – however, despite this it is also true that financial markets over-extend more often than normal, and the direction of the trend trumps all other considerations.

EUR/USD 4 Hourly Chart

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