EUR/USD passed a bad week and still looking Bad!!. On the other hand Obama re-elected in USA election for second term and no little progress on Greece and sent the pair lower and lower. Now we see,the EUR/USD is looking under pressure as the markets tensely keep an eye on the developments of Greece situation. The IMF and the European finance minister failed to reach an agreement on Greece’s debt that would ensure more funds for Greece but it failed and more pressure is growing day by day on Greece. We know one problem is enough to create another big one and here anything can be happened for Greece.Today in Economic news, German ZEW Economic Sentiment came well that was below the Forecast and now fueling concerns over the health of German Economy that also important for Eur. Do you know what is going to happen for upcoming days?Well; here I will try to indicate the next movement of this pair on the view of technical only.
EUR/USD consolidation / ranging has broken down Lately that formed after a significant uptrend at the beginning of August and it continued mid-September. We see in the chart that the EUR/USD already broken the uptrend as well as the trading range which I have pointed here. We know the forex market typically consolidates after a period of trending up or down, here the EUR/USD can be formed like that and it may break back with the previous trend or it may create a new trend in the opposite direction.
Here we see the EUR/USD recently has made a new downtrend after making a new low below the support level 1.2800 and the price closed at 1.2700 last week that was a round number. Look the last low and high of the previous uptrend that failed to create higher high and finally formed lower low which was the sign of a new downtrend in the opposite direction. Now In the daily chart a inside bar formation was formed and finally the price broken the low of the bar and stopped at 1.2660 and already found a minor support to push up. Look at the chart deeply and see the EUR/USD was a big pressure over the last week and didn’t make any major movement to the up. I think upcoming days can be worst for EUR/USD as the chart says like that.
Do let me know what are you thinking about EURUSD and also share your technical view if you have.