Bearish price action in the last two days on EUR/USD, a daily chart of which is shown, has finally filled the substantial price gap that occurred in the very beginning of the trading week. This gap fill raises the possibility that a bearish stance within the current overall downtrend may once again come back into play after the double-bottom and bullish correction that were established late last week.

Further bearishness on this gap fill should target strong support in the 1.3400 price region. In the event that 1.3400 is broken convincingly to the downside, clear further support resides around the double-bottom low, in the 1.3265-80 price region.

Any break below that double-bottom low would confirm an overall downtrend continuation, potentially targeting further downside support around the 1.3100 price region.

Recent Articles By James Chen:

• EUR/USD – Continues Upside Correction After Non-Farm Payrolls
• EUR/USD – Continued Steep Bearish Bias
• USD/CHF Trading In A Potential Uptrend Channel
• Can USD/JPY Break Above Key 83.00 Resistance?
• EUR/USD Makes Bearish Correction After Hitting 9-Month High
• All Articles By James Chen »

Leave A Comment :