The EUR/USD pair tried to rally during the course of the day on Wednesday, even as it touched the 1.3150 level. A lesser executive in the European Central Bank suggested during the day that further quantitative easing was very unlikely out of the ECB next week, and the Euro of course did get a little bit of a boost because of that. However, you can see that the gap from the open this week is still in effect, and as a result the 1.32 level is the beginning of relatively strong resistance. I see that resistance going up to the 1.3250 level, and as a result I am looking for resistive candles above in order to start selling. I’m willing to look at short-term charts to get those signals, and as a result I am essentially “sell only” at the moment.

In fact, it’s not until the market gets above the 1.33 handle that I would even consider looking for buying opportunities. I think that the 1.30 level below is in fact the next target for the Euro, and it’s only a matter of time before we get down there.

Strong downtrend, nothing’s changed.

The downtrend is most certainly still in effect, so as far as I can see nothing has changed. This is a market that should continue to offer selling opportunities every time it rallies, and therefore short-term traders will continue to pound the Euro over the next several sessions in my estimation. On top of that, the markets could very easily break down below the 1.30 handle, and head to the 1.28 level which is my longer-term target. This market looks horrible, and nothing has really suggested that anything should be different. Even if the ECB doesn’t add quantitative easing next week, it’s only a matter of time.

There is no inflation whatsoever in Europe at the moment, and that makes central bankers nervous. They will trying to stoke inflation through quantitative easing one way or the other, and as a result I believe that the market continues to sell.

EURUSD 82814

Related Articles
  1. Personal Finance

    Is An Ivy League Degree Worth It?

    In 600 B.C. Aesop determined that a bird in the hand was worth two in the bush. Warren Buffett claims that this axiom can be used to determine the most valuable uses of capital. In this article ...
  2. Investing

    Time to Bring Active Back into a Portfolio?

    While stocks have rallied since the economic recovery in 2009, many active portfolio managers have struggled to deliver investor returns in excess.
  3. Chart Advisor

    ChartAdvisor for November 27 2015

    Weekly technical summary of the major U.S. indexes.
  4. Retirement

    Suddenly Pushed into Retirement, How to Handle the Transition

    Adjusting to retirement can be challenging, but when it happens unexpectedly it can be downright difficult. Thankfully there are ways to successfully transition.
  5. Mutual Funds & ETFs

    The Democratization of the Hedge Fund Industry

    The coveted compensations of hedge fund managers are protected by barriers of entry to the industry, but one recent startup is working to break those barriers.
  6. Investing

    What a Family Tradition Taught Me About Investing

    We share some lessons from friends and family on saving money and planning for retirement.
  7. Retirement

    Two Heads Are Better Than One With Your Finances

    We discuss the advantages of seeking professional help when it comes to managing our retirement account.
  8. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  9. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  10. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center