Trend-confirming bar on EUR/USD - what's next




EUR / USD extended the losses on Tuesday, recording 4 consecutive days of losses. The pair fell below the key technical level of 1.1400 and is currently changing hands at 1.1342, the lowest price since July 2017. The pair broke under consolidation support that lasted 2.5 months and bears again control the market.

The downward movement at EUR / USD correlates with the rise in the dollar index, which touched a new 13-month high. Like the currency pair, DXY has been consolidating since the end of May and broke up at the end of last week.

EUR / USD has met the expectations of traders, for the time being observing their technical formation. On Tuesday, an engulfing, trend-confirming bar on a daily chart is formed, which suggests that bulls' headaches have not yet ended.

These levels are not good for short positions as there is no place to put and protect the Stop Loss, but by the end of the week I expect each rise to give a good opportunity to add to the short exposure to the trend.

 Trader Aleksandar Kumanov

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