Huge sell off on the EUR this past week, I was looking at this as a chance to long back up to resistance as it is oversold but looking at the bigger picture I think it is best to hold off at the moment. The situation is very bearish and there will certainly be swing trading opportunities here but the trend is going down and longing anything here seems like a big risk not worth taking.
Looking at monthly and weekly timeframes you see this is retracing back to the previous peak from August 2018, if it reaches this point that would be the perfect time to be longing this. Although it may not go as far as this, we are now at 0.618 Fibonacci and as this is currently oversold it could reject this area and level off before rising again back towards the all time high.
With this in mind it makes sense to hold off a trade on this pair and some other EUR pairs until the situation unfolds. Once it does it could open up some very profitable opportunities.
Looking at monthly and weekly timeframes you see this is retracing back to the previous peak from August 2018, if it reaches this point that would be the perfect time to be longing this. Although it may not go as far as this, we are now at 0.618 Fibonacci and as this is currently oversold it could reject this area and level off before rising again back towards the all time high.
With this in mind it makes sense to hold off a trade on this pair and some other EUR pairs until the situation unfolds. Once it does it could open up some very profitable opportunities.