Euro Downside Potential

Since my update on the 10th (click here to be taken to it), we have seen some range bound movement on this pair. Having studied it further, we think we have more reason to believe a downside potential is more likely than upside. This was the case shown on the my system (Metastock chart) and also with basic analysis (Advanced Get chart).

Both the charts below are daily time frame and we are getting ready for short positioning on these. What we would like is a candle reversal and one other reason to add to our confluence of events. This may come in the form on fundamental or technical.

At present the recent mini trend from the 6th December looks like a bearish flag. It is holding at the 50% level so that is good for a coninuation downtrend pattern. We have the first leg, currently in the pause and now waiting for the second leg. If it reverses and does not produce a second leg then stops will kill any major losses.




Charts courtesy of Advanced Get & Metastock. Data provided by eSignal and Quote Center.


Forex Team

Anne Chapman & Javid Shaik