This is the daily chart of EUR/USD.
We can see a downtrend because of 3 factor.
First, it can be seen clearly that a triangle formation is form. The 5 wave triangle touches 3 time top and 3 time bottom of the triangle.
Last Friday this triangle formation was broken and it clearly show a downtrend direction.
Secondly, the overall picture currently the trend is going on a 5th downtrend wave base on Elliot wave. If they trend is really going on a downtrend 5th wave, there is a possibility of going further below
Thirdly, on weekly base chart, we can see another bigger triangle formation is forming. Currently going on a downtrend direction towards point 5.
Those who had not anticipate this movement, you could place a entry after the correction of 31.8% at 1.3157 or place a sell entry on 1.3000 to confirm the downtrend. I believe the target take profit should be 1.2644 and below.
On fundamental analysis,
- ECB members spilts on how to proceed after rates hit 1.00 percent.
(This shows a chance that there could be a interest rate cut)
- Euro Zone inflation hit a record low - the support for holding the rates up is fading
- Euro break below 1.31 as the dollar flexs its fundamental muscle
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