On the back of weak commodity prices and a higher inflation in Euro Zone, this pair had started an amazing rally since April which came to an apex during the dramatic scenes of 24th August.
Now that the commodities have started decent rallies recently on one hand and ECB's Draghi today has signaled a willingness to expand the QE program if needed, this rally is doomed to end. The ascending trend line is going to break today and this is a good opportunity to go short. More conservative traders might wait to see the break down of 1.5398 support and then go short.
Stop loss level should be put at 1.5822 swing high. That was the last time the bulls tried to bounce off the trend line.
Good luck,
Ali Sharif Azadeh, CFTe
Now that the commodities have started decent rallies recently on one hand and ECB's Draghi today has signaled a willingness to expand the QE program if needed, this rally is doomed to end. The ascending trend line is going to break today and this is a good opportunity to go short. More conservative traders might wait to see the break down of 1.5398 support and then go short.
Stop loss level should be put at 1.5822 swing high. That was the last time the bulls tried to bounce off the trend line.
Good luck,
Ali Sharif Azadeh, CFTe