Published 7th November 2018
Sentiment and position readings moved from one extreme to another for the USD during the course of this year. A sideways correction fetched even higher odds during the past few days as the grey trend channel got violated to the upside. The former red scenario is now black. The red portion is a gentle reminder that price action has the potential to cause some complications by extending sideways into some double-three combination. The key takeaway is that the paramount trend remains down despite a sizable correction potential.
Last but not least, the horizontal blue dotted line is the most important detail in the very first chart below. It is located at the late October swing low. If that low gets crossed again, an immediate continuation to the downside is likely. That is especially valid if this kind of actual occurs on increasing downside momentum.
The analysis above is a historical abstract of our EUR/USD Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.