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Forex

EUR/USD : Shorts beware

EUR/USD has risen from a low of 1.1876 during June and went on a rampage to 1.412 all within a short period of 4 months.

There’s always the temptation to short it since it has went up so much in such a short period. Couple it with various ‘ideologies’ about weak Europe economies etc.

It is beyond me to understand and explain about all possible implications from EU actions or the US ‘printing press’.

One thing for sure, the EURO rapid rise has since formed a huge kumo support base at around 1.395 on the Ichimoku’s Daily Chart.



Secondary support is around 1.34 at the base of the kumo. This coincides with the kumo support on the Weekly Chart.

The Weekly Chart also shows a kumo twist on the leading kumo suggesting more upside to come.