[EUR] Rebound in short period

EUR/USD 4-hour chart, source: forexfactory.com

EUR/USD weekly chart, source: forexfactory.com

Before the U.S. Presidential election, the chart of currency pair EUR/USD drew the downward trend pattern, Double-Tops pattern in four-hour chart and there was a gap decline on Monday. In ordinary week, the gap occurred on Monday is bridged on the day, but the event failed and the price step back.


The price of the pair bridged the gap at one gulp and lost its rocketed price soon on the U.S. election day. The uncertainty about the election swung the market. Except the noise, the price kept the downward trend in last week.


The trend looks explicit downward trend. If the trend-follow strategy is welcomed well, it is reasonable to enter the market with short bias. But we need to be informed that the price fell to the support band in last October. It is difficult to break the support price band without some tries in my experience and the price may rebound on this price.


But it doesn't mean the trend direction's turn. Because the price trend has lowered its peaks gradually. The rebound may be temporary adjustment or upward trend in short-term.


The explicit signal and pattern are not found in the weekly chart of EUR/USD yet. The band of price becomes narrow and the direction of the price is not uncertain.


Whether long or short position, the trading needs to be completed in short term, I think.
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