The shambles that is Europe is currently reflected in the euro which continues to plumb new depths on the weekly chart, as each weak attempt to rally is snuffed out. Whilst the economics of Germany continue to weigh heavily, and Brexit also taking its toll, the technical picture on the weekly chart makes the case clearly, with the deep wicks to the upper body of the candles telling their own story.
This has been the case since late last year, with last week’s wide spread down candle engulfing the up candle of the previous week and driving the EUR/USD pair towards the 1.0900 region and lower. And with a low volume node now ahead and with the trend monitor indicator also turning bearish, the longer-term outlook does not look promising for the single currency and should the 1.0850 region be breached, expect to see the euro continue lower across the complex.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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