Baxia Markets
June 08, 2021

EURUSD enters a downward trend

technical analysis top header -01


From this 4 – hour plot, we can see that the price of EURUSD moves within a downward channel recently, not a significant angle; however, still a signal for the end of the upward trend. The previous upward trend had lasted for more than two months, stable and mild, until the end of May, the downward channel showed up. Now, the downward channel has been there for 280 hours. Although waves are steep, they all stayed within the channel. 



I know a channel is not enough to prove a trend, so let’s find something else. The Bollinger Bands do not show a shrink or expansion. However, we can observe that the Bands stop going up and seem to hold a downward trend. Also, we can see three downwards tests within the channel. The price was trying. Ichimoku stops overlap with the price line; now it goes up; this could also be considered a bearish signal. 




Bear power does not show a significant signal here; it needs time to react.  Standard Deviation now cools down from a big wave. As we know, Standard Deviation reflects the stability of the price; so, this could mean that the price could stay in this trend for a while.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

forex, trading conditions, technical analysis, trading indicator

Subscribe by Email