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Collins: Trading EURUSD downside with caution

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Alan Collins believes that although the underlying tone in EURUSD is clearly negative some caution needs to be applied to today’s trading.
Alan pounts out that: "We have 3 negative signals;
• EURUSD has been sold at lower levels in each of the last 5 weeks,
• last week's profit taking rally was capped by a Marabuzo line created on Nov 6th and
• prices are hugging the lower end of a falling Keltner channel. "

These factors all emphasis the bearish bias but intraday signals for sentiment are now at exceptionally oversold extremes so Alan is urging caution if selling at current levels.

Sell at new lows of 1.0623, with a stop at 1.0663 or Sell a Rally to 1.0680 (stop 1.0724) with downside targets at 1.0587 and 1.0555.