Bearish On Euro Dollar
Daryl Guppy | May 22, 2019 19:46
The Eurodollar has been stuck in a steady downtrend since May 2018. This is a relentless trend that found very temporary support near $1.115. When this support fails the next downside support target is near $1.085.
Traders looking for a rebound from support and the potential new uptrend will be disappointed.
We start with the strength of the downtrend. The long-term Guppy Multiple Moving Average is widely separated and shows committed investor selling. This is a stable trend, with no compression in the long term GMMA.
The short term GMMA is also resolutely separated and shows limited trading activity. Traders are also committed sellers. This is confirmed with the steady separation between the two groups of averages.
The EuroDollar has been stuck in a sideways trading band between $1.115 and $1.145. The width of this band is measured, and the value projected downwards to give the downside target near 1.085. Traders will have plenty of tome to adjust as there is no indication that the trend will accelerate when price moves below current support levels. This is a low probability, stable downtrend.
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