The euro/dollar currency pair (EUR/USD) has been trending lower for almost tow year, and we don't expect anything to change just yet. This is a very intriguing foreign exchange play with a great risk-to-reward ratio. From May 2014 to early 2015, the EUR/USD just melted with no significant corrections.
After about a year of bearish momentum, we started to see a sideways correction. Corrections are often a healthy part of a longer-term trend's continuation, although many people may view them as reversals of the trend. In the current case, we think the EUR/USD's downward trend will continue. Followers of Elliott Wave theory will view the daily as looking like an ABCDE triangle.
Look for price to stall out around the 1.15000-1.16000 level before you sell, with your stop losses set at 1.17000. Still, with a stop so close to the previous high, professional trading desks will know most retail traders have stops there and may cause the pair to spike before making it tank.
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