~ Week Of Dec 19th 2016 ~
Will The Downtrend Remain Intact?
Published By Jay - December 19th 2016
The popular and widely traded EURUSD currency pair has been in a strong downtrend for the last few months and is now trading at a price that hasn't been seen for quite some time. Looking at the daily chart below we can see that the market has previously reacted around the 1.05000 level. In fact, if you looked at the daily chart zoomed out even further you would see that this price zone was respected as far back as March 2015, therefore making it a key one.
After a strong push down by the bears on Thursday the 15th, the market has now reversed and is making a move back into this key price zone. At the time of writing price is around 50 pips from this area. At this point in time we are definitely in the sellers camp, and if we can see the key price level hold and print of an indication to get short with the market, then we'll sell this pair to bank some profit. In the meantime, as always, we'll patiently sit on our hands until the edge is clearly in our favour.