The EUR/USD confirmed a very weak closing last night but managed at least to close above 1,3850, the support of the inside day. Nevertheless it broke the support line, now s/t resistance at 1,3945, suggesting lower levels!! In the monthly chart it formed instead appositive month reversal but only a monthly closing above 1,4248 will confirm a bottom.
This morning we had already a 1,38 undershooting that we used to take back the shorts made on the break below 1,3850, the stop and reverse of our yesterday’s position!!
The indicators of the daily chart are still positive but those of the monthly one remain below the line. The indicators of the s/t charts are all negative supporting lower levels. Bullish divergences in the hourly chart already confirm the negative tone.
Possible therefore an extension of the decline toward the 200 4h line at 1,3672!! Possible rebounds should find resistance at 1,3870 before the 200 hours line at 1,3944
We suggest waiting for a decent rebound to go short, possibly close to the 200 hours line
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FUTURE TREND RESEARCH