EURUSD – On the daily Time frame the Euro dollar is testing the line from which it broke out from last week. The pair reached the point which coincides also with the 9EMA and fell lower.
What is the pair going to do from here?
Bull Case: If the bulls are able to push it back into the channel, we have a situation where the whole scenario can revert back to the bull’s case at the technical level. Although we have to bear in mind also that with the recent interest rate cut by the ECB, it has taken the fluff out of being Euro bull. Nevertheless, there are some traders who feel that the selling is overdone and euro should revert back to being bullish. At this point, it is hard to say actually.
Bear Case: Yesterday’s close looks like a hanging man candle and I think that if the bears wanna put some show and prove that they are still in control of this pair, they should act now. Non action can be taken as the bears have lose their power and might and have exhausted themselves. I am observing closely what the bears can do from here. They definitely have a case to go short from here and I am watching whether they do.
To your Trading Victory!