Hello fellow traders.
Lets take a look at the Euro.
The question right now is whether we already have or have not hit the bottom. Many see 1.19 and the low slightly below (the 1.1860/70) that was hit last week as a possible bottom. I tend to agree with that partially but still with a great caution.
I posted short time ago about the importance of the 1.1850 area, and indeed we saw strong buying coming from areas below 1.1900.
BUT if we look at the weekly chart we see that almost every week after the retest of 1.29 all time high, we got new lows each candle. Now lets ask the same question - whether or not did we hit the bottom yet. I wouldnt be very sure.
Yes, indeed the 1.1850 was and is a strong support and we couldn't expect it to be easily broken, but if we do break it, 1.15 becomes very well exposed.
Same support line that I was posting from late march is still in place and despite being sluggish, move south is there. Yes, indeed each time we touch it we bounce back, but that is due to market still being afraid to sell Euro with confident, but we cannot ignore that we moved 1000 pips from the 1.29 high in 2 months.
To sum up, I say we are moving slowly, but still down for now and if market will not form a good bottom right here at 1.19, we may see 1.15 maybe even sooner that we think. For now I do not trade this pair. Maybe later during the week. I will post. Currently I have an open position on USDCAD, but since I only posted comments on that pair and didn't make a call on that trade, I will not be talking about it.
Have a great trading week,
Rezo
