although I have been shorting the EUR/USD pair for a while, and will likely continue in the near term, I am taking high caution going forward (ie. tighter stops and limits)
From a technical perspective, this intermediate downtrend should be retracing soon. Looking at the most recent downtrend from Dec. 6 - Dec. 21, the move was about 940 pips, or a 6.20% decline. at the end of december it had a bear flag formation and continued lower. Most bear flag continuations last the same length as the preceding trend. Which it has already surpassed. From Jan 12 - Feb 4 the pair decline 1001 pips, or 6.86%. Along with this, there is some previous resistance that could turn support are the 1.35-1.36 range.
I understand the global debt issue, race to the reserve, etc. I am just looking at this from a technical perspective and not advocating a buy on the EUR/USD. just a caution to sellers.
From a technical perspective, this intermediate downtrend should be retracing soon. Looking at the most recent downtrend from Dec. 6 - Dec. 21, the move was about 940 pips, or a 6.20% decline. at the end of december it had a bear flag formation and continued lower. Most bear flag continuations last the same length as the preceding trend. Which it has already surpassed. From Jan 12 - Feb 4 the pair decline 1001 pips, or 6.86%. Along with this, there is some previous resistance that could turn support are the 1.35-1.36 range.
I understand the global debt issue, race to the reserve, etc. I am just looking at this from a technical perspective and not advocating a buy on the EUR/USD. just a caution to sellers.