For several weeks we have been writing that a close below the 50-Day SMA would be required to force a shift in the structure. We have finally now seen this play out on Friday, after the market pulled back sharply to close below the medium-term SMA.




EUR/USD: For several weeks we have been writing that a close below the 50-Day SMA would be required to force a shift in the structure. We have finally now seen this play out on Friday, after the market pulled back sharply to close below the medium-term SMA. Next key support comes in by the recent consolidation lows at 1.4800, and we would expect this level to be easily taken out over the coming sessions ahead of a retest of major support by 1.4625. For now, look for any intraday rallies to be well capped ahead of 1.5000. STRATEGY: SELL @1.4985 FOR AN OPEN OBJECTIVE; STOP 1.5185. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON MONDAY. 3X LEVERAGE.

 

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com