EUR/USD shorts preferred while below 1.0650 - Vladimir Mihaylov

FXStreet (Barcelona) - Independent Analyst, Vladimir Mihaylov, maintains a bearish outlook on EUR/USD, viewing that a break below 1.0550 will signal the resumption of a fresh downside move towards 1.0460.

Key Quotes

“EUR dropped again below the main support 1.0800 and reversed the bullish recovery to bearish continuation. Currently indicators on all time frames are bearish and i expect the downside to continue soon.”

“Breaking below 1.0550 will signal that the pair starts a fresh move to the downside with target 1.0460 and then 1.0420.”

“We have now a strong resistance area at 1.0790-1.0800. Only a Daily close above will reverse the bearish outlook.”

“As long as we are below 1.0650 you may open SHORT positions. Do not allow more than 15 pips SL.”

“Tomorrow US retail sales are expected to be better than previous and this should press the EUR price to the downside more. The next day is the ECB's meeting and mr.Draghi's speech with some more volatility expected.”

“If the pair is unable to break above 1.0800 then it will continue to drop till the end of this week.”

“On thursday the main events will be US jobless claims and Philadelphia's FED index. The week will end with the US CPI on Friday which is also expected to be better than previous.”