Waiting for the Pullback to End in EUR/USD, So We Can Go Short - Forex News by FX Leaders
The pressure remains to the downside for EUR/USD

Waiting for the Pullback to End in EUR/USD, So We Can Go Short

Posted Tuesday, October 1, 2019 by
Skerdian Meta • 1 min read

The Euro has turned pretty bearish in recent months. Last week it broke the support zone at 1.0920s, while yesterday it broke below 1.09. Today the downwards pressure continued during the Asian session and this pair made new lows. The inflation report today was sort of mixed, with headline inflation ticking lower to 0.9% from 1.0%, while the opposite happened to core inflation, which ticked higher to 1.0% from 0.9%.

Although, these numbers are still pretty weak. Manufacturing continues to remain in deep contraction, as today’s final reading for September showed. The ECB has turned dovish, so there’s not much the Euro can do, apart from continuing to move down.

Although, we have seen EUR/USD retrace higher in the last few hours. The retrace is complete on the H1 chart, but this pair is still oversold on the H4 time-frame. The previous H4 candlestick closed as a pin which is a bullish reversing signal after the downtrend. The current H4 candlestick already looks bullish.

So, EUR/USD is still retracing higher on this chart and we will wait until the 20 SMA (grey) catches up. If we see another reversing pattern up there, such as a reversing candlestick, then we will be persuaded to open a sell signal. But, let’s wait and watch the price action until then.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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