EUR/USD - Marked Downtrend Bearishness

February 5th, 2010 by James Chen

EUR/USD Daily ChartPrice action on EUR/USD, a daily chart of which is shown, has displayed continued marked bearishness recently, strongly confirming a new downtrend in the pair. This new downtrend was initiated after the previous long-term uptrend was broken decisively to the downside in early December. After that breakdown, the bearish trend has been characterized by several short-term bullish retracements and consolidations in the form of inverted flag patterns, but each time these trend interruptions were broken strongly to the downside. For more technical analysis on this currency pair, please click here for Friday’s (2/05/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.


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Posted in Forex Strategy, Forex Trading Strategies
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