EUR/USD is bearish for now
The Eurodollar fell to 0.95 last week and caused a lot of uncertainty as it continues to fall further. Currently, this currency pair is in a big descending channel and the downtrend is obvious. Many traders are probably already eyeing it and if EUR/USD gets out from this channel, it could cause a massive surge.
Related article: EUR/JPY remains volatile, defends uptrend for now
For now, it’s worth mentioning that a sell position somewhere at the upper side of the channel would be a smart choice by going with the trend. Fed’s monetary policy is still hawkish, and it is strengthening the Dollar. However, if ECB starts to hike interest rates to catch up with Fed, it may cause a reverse trend on this currency pair, and Euro could start rising again.
As mentioned here, USD gained more than 20% in one year, and it is considered an above-average move in the foreign exchange market. From the long-term perspective, EUR/USD could find its bottom in a few weeks, but it is recommended for traders to wait for several confirmations and stay bearish until that happens.
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