As of 5:30 pm EST Crude (CL1!) has fallen 4.64% and has broken its last most recent major support level. Due to this breach, it is most likely that negative crude price action will continue. Based on the inverse correlation between Crude and the US Dollar, Crude’s impending continued fall will be good news for the US Dollar. Us Dollar rally will result in the downfall of any currency pair with USD in the denominator. Aside from the US Dollar’s imminent rally, EURUSD is currently on the bottom side of a trend line stretching all of the way back to January of 2014. This trend line has acted as both trend support and trend resistance. A tremendous push of bull strength will be required to break this long term structure. Therefore, as the most likely outcome, I anticipate a EURUSD bear market lasting until up to 2016. Potential targets will be 1.08, 1.05, 1.02 and parity. FOMC was leaked and the resultant market price action was bullish, although it has not penetrated the trend line.
As always feel free to leave your thoughts and comments and please don't hesitate to leave a like I do appreciate it. Happy Trading!
As always feel free to leave your thoughts and comments and please don't hesitate to leave a like I do appreciate it. Happy Trading!
