The EUR/USD pair tried to rally during the day on Monday, but ran into far too much exhaustion at the 50-day exponential moving average to continue. Because of this, we ended up turning around and forming a shooting star looking candle, which sits just below the hammer from the previous session. It now looks as if the EUR is going to drop down below the 1.06 level, and perhaps reach towards the 1.05 level where I anticipate more support. When you look at the MACD, it is obvious that we are running out of momentum so a continuation to the downside makes quite a bit of sense. There are still a lot of concerns about the European Union, and the US dollar should continue to strengthen overall going forward, adding even more bearish pressure in this market.
EUR/USD and GBP/USD Forecast - 14 February 2017
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex...
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.