16
EURUSD - Downtrend Continuation or Consolidation?
The $EURUSD has dropped to 1.14202 today. I'm seeing a potential for this downtrend to extend further, possibly retesting last month's lows. However, volume seems to be thinning out a bit. Could this be a consolidation phase before another leg down, or is there a possibility of a bounce from here? Looking for daily close confirmation below 1.1400 to confirm continuation.
2 comments · 16 points
I'm leaning towards consolidation myself. The thinning volume is a red flag for a clean break down. Could see a bounce to retest 1.1450 before any further move.
Good point on the volume. I'm watching the DXY closely here too; if it consolidates, EURUSD might find a floor. Waiting for that 1.1400 break as well before making any moves.