EURUSD Keeps The Bearish Outlook Intact
June 29, 2013 in Chart Alert
EUR/USD had fallen below 200-day moving average and then 55-day EMA during last to last week. Last week’s price action made those breaks as decisive to strengthen the bearish outlook.
EUR/USD’s price action below 200-day SMA and 55-day EMA
Lets’s also check the longer term view of the price action against the 200-day SMA and 55-day EMA in the following chart. The red line is the 55-day EMA line and blue one is 200-day SMA line.
Were the earlier gains mere consolidation?
The important point why this fall made the bearish outlook stronger is that the downward move started much before the pair could complete the 61.8% retracement of the fall from 1.4940 to 1.2042. Not only that but the price has broken below the 38.2% retracement of this move once again.
Considering all the above points if there is a decisive break below 1.3000 by some extended price action below this level then a move towards 1.2890 can be expected. Any break below 1.2880 would have deeper implications.
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