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| EUR/USD 4-hour chart, source: forexfactory.com |
The long bias about Euro against U.S. Dollar isn't changed yet. Though the bias, there was an adjustment last Friday. It plunged to some 1.1030s pulling short-term trend line down. The trend line needed to be set again, but the long bias is available still. The price band acted as support line and the price of currency pair EUR/USD succeeded the rebound. The double-bottoms pattern is being completed in 1-hour chart and the pattern is watched in 4-hour chart, too.
We could confirm the strong support line and the upward trend. Unlike sterling, Euro appeals to market participants with the long position.
The reason of falling was political. The attempt of Coup in Turkey pulled down the Euro price. The coup was failed and the price was recovered. This political event is occurred suddenly and nobody forecasts the event. It's natural that the price fluctuates. We can't forecast it but we can respond. Because the trading is to respond to the market.
And we need to watch the political situation in Turkey. The political risk from Istanbul may affect the market. After the fail of coup, Turkish President Erdoan may avenge his political opposites. IS problem and the refugee problem from Middle East made Europe governments and U.S. government cooperate with Istanbul.
Meanwhile this event makes us think the importance for responding market. Though the judgement about the market is correct, quick responding opposite the opinion is needed. It's not mean opposite position. You can stop entering the market or do a loss cut.
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