"US market is likely to absorb the bearish wave from Europe, and boosted by some continued positive data, continue its positive trend."
EUR/USD Selloff – A look at Momentum and Trendline
Sell-off: The market is selling EUR/USD to start the week. From last Friday’s (2/1) high of 1.3710, EUR/USD has slid to almost 1.3550 by the beginning of the 2/4 US session. This took out Friday’s low and into a minor consolidation range we saw last week. Momentum: The 1H RSI fell below 40, showing loss of bullish momentum in this time-frame. Last time this happened, we had almost 2 weeks of sideways action within about a 150-pip range. However, the 4H RSI is still above 40, so momentum in this time-frame remains bullish. Look to see what happens if the correction drags the 4h RSI down to 40. If the ... (full story)