Friday’s candle merely reinforced our view that the short squeeze of Thursday was very short lived only lasting for the morning session before prices fell back to close below the 9 day moving average creating a nice bearish candle. As a result Friday’s price action continued the move lower, as expected, finishing the day well below all three moving averages adding to the bearish sentiment which remains firmly in place for the time being. My initial target for this trend is the strong resistance in place at 0.80 and provided the moving averages continue to confirm this position then we should see this achieved sooner rather than later. With a complete dearth of fundamental news on the economic calendar other than the German IFO sentiment numbers, for either Europe or the UK we can expect today’s price action to be somewhat desultory and we should wait for the trading week to unfold before considering entering any fresh short positions for this trend.
You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
