On friday, Euro managed to finally break out from the pennant it was ranging in. Due to low volume on friday, the breakout was slow and lacked sufficient momentum for me to stay confident in an upside bias. I still believe Euro is going down to 1.0500 monthly key support, a psychological level. Euro has been, since 2015 (2018 excl.) ranging between 1.0500 and 1.1500 level. Since the retest of 1.1500 level, price has yet to complete the move and hit the low target of 1.0500.
My long term prediction on Euro is very bearish. I see this pair hitting 0.8500 in the next couple of years. Therefore I have a downward channel on the higher timeframes which I keep my eyes on for my long term prediction. Based on that channel, price is yet to complete the bigger move by first hitting 1.0500 level before any bullish cycle. Therefore I believe this current breakout from the pennant to be a false move.
Ofcourse, a bullish view cannot be excluded, so to invalidate this long term selloff bias, price should show a strong move by completing the breakout of this pennant. If price will see some momentum from 1.0910 level, the short move may be invalid and new higher highs can be expected. If I see price breaking 1.0850 support, I will enter a medium to long term short upon a retest or retracement.
Another setup, which includes a break back into the pennant but a strong bullish bounce from 1.0850 level is also a possibility.
These are my views on Euro. Not attached to anything so will patiently wait for one of these setups to play out.
My long term prediction on Euro is very bearish. I see this pair hitting 0.8500 in the next couple of years. Therefore I have a downward channel on the higher timeframes which I keep my eyes on for my long term prediction. Based on that channel, price is yet to complete the bigger move by first hitting 1.0500 level before any bullish cycle. Therefore I believe this current breakout from the pennant to be a false move.
Ofcourse, a bullish view cannot be excluded, so to invalidate this long term selloff bias, price should show a strong move by completing the breakout of this pennant. If price will see some momentum from 1.0910 level, the short move may be invalid and new higher highs can be expected. If I see price breaking 1.0850 support, I will enter a medium to long term short upon a retest or retracement.
Another setup, which includes a break back into the pennant but a strong bullish bounce from 1.0850 level is also a possibility.
These are my views on Euro. Not attached to anything so will patiently wait for one of these setups to play out.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.