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Euro Shows Potentially Dangerous Pattern

Published 05/09/2017, 07:38 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
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USD/PLN
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NZD/CHF
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Buy the rumors, sell the facts, that is what is happening with the EUR right now. Maybe this bearish sentiment on the EUR will accelerate and will create an opportunity to close those gaps that were created after the first round of the elections.

On the daily chart on the EUR/USD we can see a bearish engulfing pattern, which is potentially dangerous for buyers. What is more, the price is attacking a mid-term dynamic support and it looks like traders will try to test the next one, horizontal on the 1.083.

USD/PLN finally made the third correction equality pattern and is coming back to the up trend. It looks beautiful. Three of the same bearish waves in a row. Bounce is additionally supported by the lows from the beginning of November when Donald Trump was elected as a president.

Speaking of corrections and equality patterns, we have to mention the NZD/CHF, which may have one right now. This would be additionally supported by the horizontal resistance on the 0.692 (green). A little bit higher we also have a trendline (black), so in this case, this correction can be a little bit deeper.

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