Euro Daily up on "weak" US data, trade war fears; EUR/USD closes above 7-day ago high

Posted by Bruce Levy on

We can't analyze the Euro without first consulting with the US Dollar.

Please see the chart annotations below.

 

The US Dollar has sold off to the lower 2 std dev channel and has closed below the 8-day ago swing low, triggering swing stops of trend traders.

However, the sell-off is not dramatic, unexpected, or out of the ordinary.

The sky is not falling as of yet, in order to trigger a sell setup we need to see price attempt to probe the prior highs and roll-over on additional weakness. 

While the Euro has closed above the 7-day ago high as we'll see in the next chart it doesn't tell us if the upleg will be sustained for more than 1-3 days.

While I am short the Micro Euro in this upleg I will liquidate if over the next 2 days we don't see a reversal.

 

 

0 comments

Leave a comment