EUR/USD 3 August Momentum Picking Up on the Short Side

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Title: EUR/USD 3 August Momentum Picking up on the short side

Fig 1 EUR/USD 5Hours Chart

Selling by the rallies were the call as I wrote the articles on EUR/USD 1 August 2012 Bullishness Today Is Just A Short Term Outlook and highlighted the contrary behavior of price action and cautioned about upwards movement in EUR/USD: Has Been a Contrary Game Recently…What to Take Away.

On the same day of the 2nd article quoted, the pair rallied to the high of 1.2400 only to see it crashing back down to 1.2150 level. This particular event is highlighted by the red box in Figure 1. I would consider this as a major turnaround in the short term bullish trend and may see it now in line with long term down trend. This event really shows how faint hearted were the traders as they swung themselves around the actions of ECB and Federal Reserves. This lack of belief on positive long term fundamental about the Eurozone was the brake to the uptrend.

Momentum can be expected to possibly point Euro dollar down again after this week of disappointment. The area around 1.200 is the possible target point for the downtrend halt, 24 July 2012 low.

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About: Gareth Tade Mansfield

A Euro Dollar Trader for the third year!

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