EUR/USD – Weekly Analysis 22/5/11
Last week the EUR/USD bulls pushed price higher until a decisive 214 pip drop came on Friday and eclipsed most of the week’s gains.
Fridays drop has formed a BEB (bearish engulfing bar) which would typically have my attention, with a view to trading short, but the proximity with the highlighted swing low does not give any trade enough space to run before support is encountered.
There is a reasonable posibility of price moving below this BEB, in this instance, and subsequently breaking through the swing low but selling into range lows is not a favoured long term strategy.
Any bounce off the 1.4000 area back up to 1.4500 would potentially be seen by the investing masses as a preferred short zone for Euro bears with more room to run before support was hit.
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