Tuesday, 13 January 2015
EUR/USD: Getting ready for the end (of the Trend)
Click chart to enlarge it.
Since April 2014 the Euro has fallen nearly 15% against the US Dollar and continues to trend strongly down. When it reaches Support Line C, it will have fallen by 21%. The strength of its downward momentum might carry it right through this Support LIne. The reversal, when it comes, is likely to be quite sudden. The last down-trend (though not as steeply sloped as the current one) did not make it to Support Line C, so it is possible, if not very probable, that the present one would stop somewhat short of the target. It would be advisable to have a Trailing Stop in place in anticipation of a sudden reversal.