Today’s EURUSD is on the downtrend, and I plan to counter-long it. Here is the advice from a FX expert :
You may like to consider some back ground now:-
1) Market has been unwinding long dollar position in past few days, market is too short on dollar
2) 1.3400 is a hard resistance for EUR/USD, therefore, some light liquidation ahead of today’s FOMC meeting result which expecting fed will maintain normal tone, however, given dollar long on Fed tapering have unwound last week, no dovish comment is good for dollar.
3) as 2 years treasury bills was up, it is a good for dollar background (spread trading).
3) Given ECB maintain easy policy in last ECB meeting two weeks ago, market is looking for opportunity to re-sell euro
4) In my RSI charts, USDCHF reach my buying level again i.e. 35% line.
Above seem is reverse to your conclusion. I will look to short the EUR/USD unless 1.3400 gives way.
Do u see the fundamental background needed to make a decision to Long / Short? ya… its really important to have basic understanding of whats going on, rather than just rely on technicals.