Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
toc-menu-hamburger.png
table of content

Table of Contents

toggle-toc.png

EUR/USD Falls During Tuesday Trading - 7 January 2015

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The EUR/USD pair fell during the session on Tuesday, as we have broken below the 1.19 level. However, there is a significant amount of support all the way down to the 1.18 handle in my opinion, and I believe that we are essentially in a 200 pips wide support zone. In other words, it’s not until we get below the 1.18 level that I’m comfortable selling this pair, and that’s mainly because of the way the monthly chart looks. There is obviously a major band of support in this general vicinity, and support on monthly charts need to be paid attention to in order to avoid losing mass amounts of money in the Forex markets. In fact, we are getting close to an area that I believe could be the end of the downtrend is things line up quite right.

Oversold

The market has been selling off the Euro like it’s going to absolutely implode. That being said, I believe that the very least we need to see some type of bounce from this level. After all, there can’t be that many people left to sell this pair right now and although I do believe that the US dollar continues to be one of the favored currencies in the Forex markets. I just believe that the Euro has been sold way too viciously.

To put it simply, unless the European Union is about to collapse, I think the currency has been beaten up far too stringently. However, if we do break below the 1.18 level, Lookout below! At that point time I think we go as low as 1.10, a level that I didn’t think I would ever see again. However, I think it can to take something special break down below there, and that would more than likely be a combination of a very hawkish FOMC meeting minutes release, which of course comes out today, and a stronger than anticipated jobs number on Friday. Unless we get both of those, my suspicion is that we are about to see a bounce.

EURUSD 1715

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews