The EURUSD is slipping back into its bearish area between the lower blue and red bands on its daily time frame. This weakness comes a day after a rally off the lows, charted by a bullish candle. Unfortunately, this positivity was short-lived, and the hourly chart has turned distinctly bearish.
EMAs have crossed down in the shorter time frame, and the stochastic has dropped into its lower quintile (blue arrow). The longer the oscillator maintains this position, the greater the downward pressure.
Please note that the Securities Industry and Financial Markets Association recommends an early close for the bond market at 2pm eastern. The early closure is part of its fourth of July weekend and may affect forex trade.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.