As I stated On Friday It was Time Too Short The EUR/USD and as All The Data Showed It did Drop and what a Drop it's Had since Trading Opened Sunday Night.
trading @ 1.29264 On Friday 11th May It has Now droped To as low as 1.28134 and all The data Looks for it go Even Lower Hold That trade - If No Trade Look To short For even Lower lows For this Pair.
Check out the Market data Below From FxStreet.com
FXstreet.com (Barcelona) - Price action still looks extremely heavy on
the EUR/USD, which has been taken down to recent lows. The short-lived
bounces suggests the pair still faces prospects of fresher bearish legs
ahead after the first attempt to bursts through this week's descending
trendline at 1.2835 has been a crashing failure. The spot rate saw a
very timid consolidation at intra-day highs followed by a retest of
earlier lows at 1.2815.
Technically, Chris Capre, Founder at 2nd
Skies, do not see downside pressure abating much: "Over the weekend, the
EURUSD gapped down and has not even come close to filling it, selling
off for now 8+ consecutive 4hr candles. This is quite a lot of
consecutive 4hr candles to close bearish and approaching the historical
maximum of 10. Could it break this all time max? Certainly, and now
would be the most likely time. However, we do not want to chase the
trend at this moment and prefer to trade pullbacks."
Thus, as
suggested by Chris, his approach is to look for price action pullbacks
to the dynamic resistance and 20ema on the 4hr chart which has held
price below it since May 2nd: "Unless some silver bullet comes out to
save Europe (which we don’t see) or Greece does a 180 and decides to
keep the debt-slavery going (I mean austerity package terms), then we
expect any and all rallies to be opportunities to sell the pair for an
eventual break of 1.2821 and the medium term target of 1.2650 or the
2012 yearly lows" Chris comments.
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