After a steep drop against the Pound, the Euro is now attempting to put in a short-term bottom at support. Several days in a row that ended near their close, with long wicked candlesticks, suggest that numerous attempts to go lower have been rebuffed, at least for the moment. This may be a good place to take profits.
The Swiss Franc has stubbornly refused to drop with other European currencies, continuing its huddle around 1.0000. This probably means that sellers of other currencies are purchasing Francs as well as dollars, keeping the cross rate stable. Until a clear upper hand emerges, traders should wait on the sidelines.
Friday’s steep drop in the Pound smashed through support around 1.57. Prices are likely to continue down to the next support level at 1.5350. The drop also penetrated the short trend channel that had been in place, confirming that a fierce selloff is unfolding.
Written by bforex.com