SaxoTV

Collins: Trading EURUSD downside with caution

417 views
November 18, 2015 equity, eur, eurgbp, euro, euro area, euro dollar, euro zone, eurodollar, europa, europe, european, european central bank, european economy, european union, eurozone, eurozone crisis, eurozone economy, eurusd, for, forecast, foreign exchange, foreign exchange market, foreign exchange strategy, forex, forex 2014, forex 2014 outlook, forex 2015, forex 2015 outlook, forex and more, forex aud, forex audusd, forex buying, forex eurjpy, forex eurusd, forex exchange, forex gbpusd, forex idea, forex market, forex market overview, forex markets, forex saxo bank, forex strategy, forex trade idea, forex trade ideas, forex trading, forex trading 2014, forex trading 2015, forextrading, forward guidance, fx, fx award, fx changes, fx crosses, fx dealing, fx eurgbp, fx eurjpy, fx exchange, fx forex, fx gbpusd, fx interbank markets, fx investing, fx market, fx markets, fx options, fx pound, fx regulation, fx saxo bank, fx spot, fx sterling dollar, fx strategy, fx trade, fx trade idea, fx traders, fx trades, fx trading, fx tradinging, fx trends, fx usdjpy, fx volatility, fx volatitily, fxallocationmodel, fxfx, fxfxfotrex, fxmarkets, fxmonthly, fxoptions, fxspot, fxtrade, sugar, sugar price, sugar supply, supply, support, us, us dollar, us economy, usd, usdeur, usdjpy
Alan Collins believes that although the underlying tone in EURUSD is clearly negative some caution needs to be applied to today’s trading.
Alan pounts out that: "We have 3 negative signals;
• EURUSD has been sold at lower levels in each of the last 5 weeks,
• last week's profit taking rally was capped by a Marabuzo line created on Nov 6th and
• prices are hugging the lower end of a falling Keltner channel. "

These factors all emphasis the bearish bias but intraday signals for sentiment are now at exceptionally oversold extremes so Alan is urging caution if selling at current levels.

Sell at new lows of 1.0623, with a stop at 1.0663 or Sell a Rally to 1.0680 (stop 1.0724) with downside targets at 1.0587 and 1.0555.