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EURUSD continues heading lower

EURUSD Tech analysis by Simon Kazinsky on 23:35 December 28, 2016 EST

The euro keeps its soft tone this week versus the all mighty dollar. One euro buys now just a bit more than a buck.

The euro dollar cross is at multi year lows and this is always tempting for those trying to pick a bargain. However, the strategy of catching a falling knife do not tend to work. Retail traders pile in opposing the trend and this, in turn, the continuation of the trend.

As can be seen on the chart there is absolutely no support where to place stop loses at present if trying to place bets in favour of the single currency. The only good news for bulls is that a wedge appears to be forming but price action remains still below the upper trendline.

On the weekly chart we can see potential support at around 1.02 buy joining previous multi decade lows.

I still favour a continuation of the lower trend until we start to see some signs of life in the cross and, at least, a short term upwards trend where supports start to form.