EUR/USD Falling Median Line Caps Initial Election Reaction
Chart Prepared by Jamie Saettele, CMT
DailyFX Trading Guides and Forecasts
-The initial EUR/USD reaction to the U.S. election resulted in a 300+ pip run that reversed right at the median line from the 8+ year channel. As noted many times in technical articles recently, the sideways trade since March 2015 represents the longest period of range contraction since the inception of the euro. The resulting break, whenever it happens, should be phenomenal. The median line has been resistance (at times to the pip) since August 2015. After the inability to break down post-Brexit, I thought that the rate would break higher. After Wednesday’s events, the downside looks more appealing.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.