EUR/USD’s Ten Straight Bearish Daily Candles

November 21, 2016

Back in the first week of November we had EUR/USD in focus with this to say as the monthly approached a major trend line support level:

“Price just isn’t going to crack and say goodbye to a level of that significance this close to a potential Fed hike (as much of a lock as it may be), let alone the possibility of a Trump presidency.”

EUR/USD Monthly:
161121_eurusd_monthly
Click on chart to see a larger view.

I love quoting my old posts as the real world narrative unfolds. We weren’t thinking about a Trump presidency AND a Fed rate hike together. It was supposed to be one or the other…

But with Trump soon to be in the White House and Yellen still on track to hike, as of Friday EUR/USD printed its tenth straight bearish daily candle. That’s the longest consecutive run of daily losses since the Euro started trading in 1999!

EUR/USD Daily:
161121_eurusd_daily2
Click on chart to see a larger view.

But taking a closer look, price is actually still in the following daily range:

EUR/USD Daily 2:
161121_eurusd_daily
Click on chart to see a larger view.

Price is approaching support, but with huge fundamental and technical momentum behind the move, it will be interesting to see the price action as price reaches the zone.

These moves have been mostly driven by USD strength with the likelihood of a Fed rate hike continuing to rise, but remember that we have an Italian referendum fast approaching as well as the endless threat of further monetary stimulus from Draghi and the European Central Bank.

How are you looking to trade EUR/USD? Let us know with a mention on the @VantageFX Twitter account.

Best of probabilities in your trading this week!

———

On the Calendar Monday:
A fairly quiet one on the calendar today with Draghi’s speech well into the US session the only high impact event.

The Vantage FX forex economic calendar.

Take advantage of opportunity in the market with Australian Forex broker, Vantage FX.

Dane Williams – @VantageFX

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