Article originally published on innerfx.com and republished here with permission
Quote of the day:“The world tolerates conceit from those who are successful, but not from anybody else.” ~ John Blake
Good morning. The ugly gets uglier for the euro as it just reached a 10-year low against the Japanese yen at 100.75 and extended its decline against the dollar to a fresh multi-month low at 1.3165 before pulling back to intraday highs around 1.3220 while writing this. Short-term resistance starts around this week’s opening level at 1.3350 and is followed by 1.3430/50 and 1.3530/50 – as seen below:
Looks very bearish as long as it trades below 1.3350. However, it would remain bearish even in case of a rally to 1.3530, so don’t expect any miracles: rallies, breakdowns = new selling opportunities.
102.00/50 is where to expect the sellers to re-enter the game
The short setup signaled by the reversal pin bar, as noted in my post yesterday, looks good so far. I think there’s more downside to be seen, retesting recent bottom support.
.8635 was indeed a good level to join the bears on yesterday’s short-lived pullback, as I wrote in my previous report. Now .8600 is where to look for new opportunities.
This doesn’t look like the common retracement so I think it’s worth to consider new selling opportunities either on a failed test of 1.3930/50 or on a break below recent bottom at 1.3850