After almost entire week of horizontal trend on EURUSD, now we might be witnessing comeback to more decisive downward movements. This time, we should justify current situation deploying fundamental analysis basics and in particular behavioral finance.
Central to present situation on main pair chart will be second day of EU Economic Summit. Current EURUSD condition, heavily biased towards bearish scenario, demands strong positive signal coming from Summit in order to change Euro outlook. Keeping in mind a long list of bullish signals that came this week from Euro Zone (e.g. soaring stock exchanges in EU, huge premium on 10Y Italian Bonds) and their virtually no impact on EURUSD leads to conclusion that only ultra-good information will trigger shift on main pair chart. Needless to say, odds for such information are close to zero! Summing up, we still consider EURUSD from short trades perspective only.