Good day, dear traders! The EURUSD pair is in a downward trend for the ninth day in a row. And many analysts naturally recommend selling this tool. It is logical – as the great trader of the last century Jesse Livermore said: “the probability of continuation of the trend is higher than the probability of a reversal.” But as practice and analysis of open positions of traders on forex shows – the stronger the downward trend, the more speculators in purchases. This paradox cannot be changed. It has always been and will continue to be so.
But let’s look at the situation with EURUSD objectively. If you did not sell the instrument at 1.1 or 1.115 – then now it is not profitable to do it. “Sell – because falling” can end up being expensive. If you pay attention to the EURUSD daily candles, there is a slowdown in the fall. Of course, everyone will predict a further fall or even collapse. But how to make money on it? The answer is no. In my opinion, selling so low with obscure risks is not objective, but there is no initiative for purchases. Therefore, I propose to wait for two events.
Event number 1. Trump’s impeachment hearings on Capitol Hill continues, and new facts and witnesses may emerge in this story that could shift the situation. This can be monitored, naturally, in the evening in the American session. In the case of negative news for Trump – the dollar may weaken significantly
Event number 2. Today, at 14:30, the producer price index (PPI) will be released, which can also weaken the dollar, thereby rendering a bullish service to the EURUSD pair.
Technically, on the “spot”, buyers can catch the level of 1.099 – this is the minimum of October 15. It is likely a false breakdown of this level, which is also interesting to watch. But I note that this level has already been passed on in the future.
Good luck with trading and follow money management!
The material has been provided by InstaForex Company – www.instaforex.com
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