Published On: Wed, Mar 1st, 2017

Bearish sentiment for EURUSD

InstaForex

Background


Renewed demand added to Monday’s minor upside to retest the key 13-day moving average yesterday. But once again EURUSD lacked the momentum to clearly break through that point, which shows the limited nature of the rally from last month’s low trade especially as the minor losses on the day have been followed by further, modest, selling in Asia. 

So going into the first day of a new month signals for sentiment are assessed as bearish targeting a retest of last month’s base.

Management and risk description


A move to 1.0512 means the stop can be lowered to break-even.

Parameters

Entry: sell in 1.0560/65 area and a 1.0590 rally.

Stop: 1.0631 bid.

Target: 1.0537, 1.0512 and 1.0493.

Time horizon: intraday, ending 1600 GMT.

Testing average

Highs rejected

Long term

Source: all charts CQG. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

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