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EURUSD Keeps The Bearish Outlook Intact

June 29, 2013 3:45 am GMT+0  in Chart Alert

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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

EURUSD below 200 day moving average and also 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.

longer term view of EURUSD against 200 day SMA and 55 day EMA

Were the earlier gains mere consolidation?

EURUSD - failure below 61.8 retracement

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.

Please leave your suggestions/comments in the comment box below.

You may also like to check the weekly EUR/USD forecast and daily EUR/USD analysis.

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